Launched in 2018, HUSD is a centralized stablecoin built on the Ethereum ERC-20 token standard. Besides Ethereum, HUSD is also compatible with other token standards like HECO, TRC20, and CRC20. It was issued by Stable Universal but was heavily marketed by Huobi as a token that was “exclusive” to its own exchange when it launched.
Stablecoins are cryptocurrencies with values tied to assets or fiat currencies like Dollars, Pounds or Euros. At the beginning of this year, the stablecoin niche was shaken by the collapse of Terra USD (UST), which wiped $60 billion out of the market.
HUSD then also lost its dollar peg on Oct 11 and fell as low as $0.90. Crypto exchange Huobi has been acquired by Tron Protocol founder Justin Sun, who has now been named a global advisor to Huobi. His plan is to replace HUSD with his own USDD and that has given rise to some conspiracy theories that Justin Sun is the real owner of Huobi.
Users with HUSD held on the exchange can convert HUSD to Tether, the largest stablecoin by market cap. The exchange expects to complete the full conversion by November 4. Although it has been actively promoted by Huobi since its launch in 2018, HUSD currently has a market cap of only $63 million, down significantly from its ATH of over $1 billion in 2021.
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