Days after Huobi Global announced the delisting of HUSD from its platform, the stablecoin has seen a decline in its price, leading to a significant slip in its $1 parity.
HUSD tanks by 23% in a day
Data from CoinMarketCap revealed that the stablecoin has tanked by more than 20% over the last 24 hours. At the time of writing, it was trading at $0.593, well below the $1-peg it is supposed to maintain. HUSD’s market capitalization has understandably declined by 24% too.
The 627% hike in the stablecoin’s daily trading volume seemed to indicate that traders are exploiting this price action to squeeze out profits by most likely shorting HUSD.
The decision to delist HUSD is largely to blame for the dramatic decline in the stablecoin’s price. The process began on 28 October and will see all HUSD balance on Huobi Global converted to USDT. The process is expected to continue until 4 November. Ergo, a further decline in the stablecoin’s price is likely.
Takeover by Justin Sun?
News of the delisting comes amid reports of takeover by Justin Sun, the founder of TRON, who also happens to be on the Global Advisory Board of Huobi Global.
Colin Wu recently reported that key executives of Huobi Global, including the CEO and CFO, have resigned from the exchange. In what seems to be a major shake-up in the exchange’s management, members of Justin Sun’s TRON team are reportedly taking over important departments in the company. Sun has also hinted at large-scale layoffs in the exchange.
“New Huobi is naturally accompanied by new people and new atmosphere. We are extremely cautious about the future personnel arrangements of New Huobi. The focus of future growth of Coin, and widely listen to opinions inside and outside Huobi, especially Huobi people who have a say in the actual situation of each position.”
In the same Twitter thread, Sun laid out his vision for Huobi’s role in the Chinese web3 industry. The TRON chief pledged to revamp the exchange’s operations in a bid to make a name for the Chinese web3 industry at an international level. Sun likened Huobi’s future status to that of the “Whampoa Military Academy” of China.