How HUSD Collapsed

unclefish鱼叔 · 2022-11-19T02:49:10.000Z

Hi, everyone, I am Uncle Yu. Recently, the market has been attracted by the "FTX thunder". Few people have paid attention to such a thing, "the stable currency HUSD has collapsed." Here I will give you a special research Let's chat about the whole story. First throw out a price chart of it: What is HUSD? HUSD was first announced in 2018. Initially, it was an integrated solution that consolidated users’ deposits of four USD-backed stablecoins (PAX, USDC, TUSD and GUSD) into a single asset – HUSD, users One can trade and withdraw any form of stablecoin they want.

Hi, everyone. I’m Uncle Yu. Recently, the market’s attention has been attracted by the “FTX explosion”. Few people have paid attention to such an event: “Stablecoin HUSD collapsed”. Here, I will tell you the whole story as a special research.
Here is a price chart:
What is HUSD?
HUSD was first announced in 2018 as an integrated solution that combined users’ deposits of four USD-backed stablecoins (PAX, USDC, TUSD, and GUSD) into one asset, HUSD, which users could trade and withdraw in any stablecoin they wanted.
In 2019, Huobi upgraded and reformed HUSD, turning HUSD into a stablecoin issued in cooperation with Stable Universal and Paxos Trust Company. The collateral assets of the stablecoin are managed by Paxos.
When the HECO ecosystem was booming, HUSD once reached a circulation volume of 1 billion US dollars, but then Huobi withdrew from the mainland, and Huobi's popularity began to decline. Along with the neglect of the HECO ecosystem, HUSD gradually lost its voice.
The love and hatred between Sun Ge and HUSD
In October this year, after Sun Ge officially took over Huobi Global, the first major thing he did was to directly announce that Huobi Global no longer supports the recharge and withdrawal of HUSD, and gave everyone one day to exchange HUSD.
This news is undoubtedly a bombshell for HUSD holders, because the main reason why HUSD is recognized now is its "H", which means that Huobi is behind it. However, this statement means that there is no strong capital endorsement behind HUSD, and capital flight and selling began all of a sudden.
Why did Sun Ge directly cut off HUSD? The main reason is that he also has a stablecoin project USDD, and according to media reports, Huobi has sold all its shares in HUSD in April 2022, which means that what happened to HUSD later has nothing to do with it. Compared with supporting an unrelated second son, it is definitely better to directly promote the prince of Tron.
HUSD is actually another FTX
Before FTX exploded, SBF stipulated in early October that FTX would not accept HUSD, which shows that SBF saw the problem of HUSD early. With opaque asset statements, a sluggish market, and a desolate heco ecosystem, it was only a matter of time before it exploded.
Unfortunately, when SBF saw through HUSD, did he predict his own future?
Theoretically, HUSD is a one-to-one collateralized asset, which should be able to support its price, but why did it collapse? It’s simple, because the issuer ran away, which means that Stable Universal no longer intends to support the value of the stablecoin, and this incident is actually worse than the FTX explosion.
I saw many HUSD holders defending their rights on Twitter, but their voices were too small. Compared with the fall of the giant FTX, the collapse of HUSD can only be regarded as a small splash in the big wave. All I can do is to speak for them and call on everyone to be wary of some centralized stablecoins.