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Huobi Explains Why It’s Stablecoin HUSD Depegged From Its $1 Value

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Huobi Explains Why It’s Stablecoin HUSD Depegged From Its $1 Value
  • Huobi team has tweeted the reason explaining why its stablecoin HUSD briefly lost its peg to the US dollar 
  • Per the tweet, HUSD has regained its lost peg to the US dollar within 12 hours. 

The HUSD team took to Twitter to share an update on the latest HUSD de-peg predicament, further stating that the stablecoin has finally regained its former momentum back and has re-pegged back to its initial $1 value. 

HUSD Has Regained Its Peg

Stable Universal backed HUSD stablecoin has finally re-pegged, bringing respite for its clients across the board. The HUSD team further took to Twitter to share an update announcing that HUSD has gained its parity with the US dollar and is back on track again. 

As reported by EWN earlier, the stablecoin had briefly lost its peg on Thursday, alarming its investors/users for a short period. The stablecoin had plummeted 15% after losing its peg, which prompted crypto exchange Huobi to intervene and assist the HUSD team in averting the said crisis. 

After #Huobi‘s active coordination with the issuer of HUSD, the liquidity issues of the stablecoin have been resolved. Huobi has always prioritized the security of users’ assets and we thank our loyal users for their support and trust.

— Huobi (@HuobiGlobal) August 19, 2022

However, the HUSD team had recently shared an update on Twitter, informing its users that their stablecoin has finally regained its lost peg. 

The team further outlined the reason why HUSD crashed almost 15% yesterday after losing its peg temporarily. Per the official tweet, the HUSD team had earlier decided to close several accounts across specific regions to comply with legal requirements. The decision also included closing several market maker accounts. In addition to this, the time difference in banking hours had created a short gap, which ultimately led its stablecoin to de-peg, triggering a short-term liquidity crisis. 

Recently, we had made the decision to close several accounts in specific regions to comply with legal requirements, which included some market maker accounts. Due to the time difference in banking hours, this resulted in a short-term liquidity problem but has since been resolved.

— HUSD (@Stablecoin_HUSD) August 19, 2022

Furthermore, the Huobi team has also tweeted a comprehensive Twitter update, describing in detail the timelines of the HUSD de-pegging event. Huobi has yet again reiterated that the stablecoin has regained its parity with the US dollar. 

“At 22:00 (UTC), the problem was resolved and HUSD trading returns to normal.

HUSD recovered its peg within 12 hours.

We would like to reiterate: #Huobi has always prioritized the security of our users’ assets since our inception in 2013.” The exchange tweeted. 

We are committed to this principle and we will continue to do so. Be rest assured that your assets will always be #safe and #secure on #Huobi Global.

— Huobi (@HuobiGlobal) August 19, 2022

HUSD has briefly escaped the growing list of stablecoins which had recently lost its peg and had crashed almost 99% in value. Dubbed as one of the biggest stablecoins crashes in history, Terra UST had earlier crashed in May and had sent shockwaves in the crypto community. 

Launched in 2018, HUSD is dubbed as “an ERC-20, HECO, TRC-20 and CRC-20 token issued and redeemed on a 1:1 basis against the U.S. dollar. ” The stablecoin has been designed to be easily redeemable with emphasis on increasing global interactions. Per Coinmarketcap, “HUSD was created to provide price stability to attract a serious crypto trading audience and simplify interactions with global markets.” At press time, HUSD is trading at $0.9989, up 9.53% (24 hours) with a market cap of $160,491,143.

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Celsius Network Will Hold Its Final Asset Auction On This Date 

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Celsius Network Will Hold Its Final Asset Auction On This Date 
  • Celsius Network is set to hold its final asset auction on October 17, 2022 
  • FTX CEO Sam Bankman-Fried is reportedly mulling over buying Celsius Network assets next week.

A recent court filing filed by Celsius reveals that the embattled crypto lender platform will conduct its final bidding session on October 17, 2022.

Celsius Is All Set to Host Its Final Auction Event 

Celsius Network has revealed a new timeline for its final auction event. The crypto lender platform will now be conducting its final bidding session on October 17, 2022, at 4:00 PM ET, alongside an auction, if necessary, on October 20, at 10:00 Eastern time.

Per the court filing filed with the US bankruptcy court for Southern New York, a sale hearing will be held on November 11, 1:00 PM ET, before chief US bankruptcy Judge Glenn Martin via Zoom.

Celsius Network, a prominent crypto lender platform, landed itself in troubled waters in July when the firm announced its decision to halt its deposits and withdrawals on the platform, citing extreme market conditions. The platform has received heavy criticism from the entire crypto community, which further spiralled out of control when the firm announced a deficit of 2.8 billion on its balance sheet.

In addition to this, Alex Mahinsky, CEO of Celsius Network, has recently submitted his resignation to the board. Mahinsky had reportedly withdrawn $10 million in the weeks before the firm halted deposits and withdrawals on its platform.

The auction, which is scheduled to go live on October 17, is said to be attended by a large number of interested parties. The CEO of FTX crypto platform, Sam Bankman-Fried, is also reportedly interested in purchasing the remaining assets of Celsius Network.

Last week, FTX.US won the first round of the Voyager asset auction by proposing a winning bid of $1.4 billion.

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Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg

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Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg
  • According to data from Bloomberg, money flowing out of crypto exchange-traded funds has slowed down by 97% in Q3 compared to Q2. 
  • Investors pulled $17.6 million from crypto ETFs in Q3 in comparison to a record withdrawal of $683.4 million from the ETF in Q2.

The second quarter of 2022 saw record withdrawals from crypto exchange-traded funds with a withdrawal of $683.4 million, which affected the price of Bitcoin and other cryptocurrencies. Bitcoin’s price has seen a 60% decrease that quarter, posting a record low of $17,785 on June 17 according to data from Coingecko.

Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg 12

Bloomberg data reports that Q3 of 2022 saw much fewer sales, indicating that capitulation may have occurred and bearish investors are now already out of risky assets such as BTC, Ethereum, and others.

ETF Strategist at Strategas securities stated for Bloomberg:

“I wonder if the second quarter was the ‘get me out part of these funds,”

According to Sohn, the third quarter may have been where the “laggards” and investors who had been “keeping the faith mentality” are now out.

Markets have declined in recent months as central banks have increased interest rates to curb inflation.

Bitcoin Witnessed An Increase In Volume This Quarter Against GBP

Bitcoin recently witnessed increased trading volume against GBP as the fiat currencies showed weakness. Bitcoin trading volume recorded an all-time high on Sep 28, 2022, as the UK’s fiat currency was threatened.

Bitcoin has been outperforming other major currencies in the past week, with a positive increase of 6.3%. Will this outperformance continue to hold, and are investors getting “orange-pilled” on Bitcoin while losing faith in fiat currency? This is something we will continue monitoring and see how it unfolds.

Money Flowing Out Of Crypto Funds Is 666M Less Than Previous Quarter Indicating Bearish Investors Are Already Out: Bloomberg 13

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Indian Crypto Exchange WazirX Lays Off 40% Of Its Staff Citing The Ongoing Crypto Winter: Report 

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Indian Crypto Exchange WazirX Lays Off 40% Of Its Staff Citing The Ongoing Crypto Winter: Report 
  • Indian cryptocurrency exchange WazirX has reportedly laid off 40% of its staff, Coindesk report adds
  • In a statement shared with the crypto news outlet, the exchange cites the prolonged crypto winter as its reason for slashing its workforce by 40%. 

Per a Coindesk report, Indian cryptocurrency exchange WazirX has slashed its workforce by 40%, citing the ongoing crypto market phase. 

WazirX Cuts 40% of Its Workforce

In a statement shared with Coindesk, WazirX, one of the leading cryptocurrency exchanges in India, has decided to lay off 40% of its staff, citing extreme crypto winter conditions. The company has reportedly laid off 50–70 people, three people familiar with the matter told Coindesk.

SimpleFX

SimpleFX

The statement later adds that these employees will be paid for additional 45 days, and after that, the workers are not expected to attend the company anymore.

WazirX, which is dubbed as one of the leading cryptocurrency exchanges in India, has cited the prolonged crypto winter as its primary reason, leading the firm to slash its workforce by almost 40%.

“The crypto market has been in the grip of a bear market because of the current global economic slowdown. The Indian crypto industry has had its unique problems concerning taxes, regulations, and banking access. This has led to a dramatic fall in volumes on all Indian crypto exchanges. ” The statement reportedly added

The firm further stated that it prioritises consumer protection and its decision to lay off 40% of its staff has been taken to “weather the ongoing crypto winter phase.”

“As India’s No. 1 exchange, our priority is to be financially stable and to continue serving our customers,” the company said. To achieve this, we’ve had to reduce our staff to weather the crypto winter. This situation is similar to the trying times the industry faced in 2018. At that time, we doubled down and built our innovative P2P engine. The crypto industry operates in cycles, and the bear market is inevitably followed by a spectacular bull market. We will continue to focus on our customers’ needs and continue to build. “We are confident that we will come out stronger when the bull market arrives,” the statement later adds

With WazirX slashing its workforce by 40%, the firm has joined the growing league of cryptocurrency exchanges that have recently decided to lay off their employees to stay afloat during the ongoing crypto winter phase. Crypto exchange Coinbase had earlier cut back on its workforce, citing the prolonged crypto winter. Similarly, exchanges like Bybit, Gemini, BitPanda, BlockFi, and Robinhood have also slashed their workforce to sustain the ongoing bearish crypto market phase.

Image: WazirX/Twitter

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