HUSD collapsed — another stablecoin is dead

Photo by Issy Bailey on Unsplash

HUSD, or Huobi stablecoin, is collapsed.

Apparently, another fake stablecoin with a fake accounting statement with assets they claimed to be pegged but did not.

To try to become a private central bank, you cannot issue currency as the actual central bank did without assets backing up.

Stablecoin needs assets backing and stable assets with cash on hand. If there are high-leverage financial instruments within the backing assets, stablecoin price tends to deviate. Higher the risk, the higher the deviation.