Huobi Global is currently facing a critical situation, in which the USDD stablecoin price continues to fall and loses its peg (depeg). According to research from data provider Kaiko, Justin Sun, who is the founder of Huobi Global, has lost 18 percent of its volume market share since 2020 and must rack his brains to recover.
Whereas at the end of 2022, Huobi represents 4% of the entire exchange market. This figure is already an alarming decline of 22% in 2020.
The USDD stablecoin is issued by the TRON DAO Reserve, which stabilizes the exchange rate for stablecoins issued on the TRON blockchain, which was founded by Sun.
The latest data from Tradingview shows that USDD failed to regain its position after the collapse of one of the crypto giants, namely FTX. Currently, USDD is priced at US$ 0.979.
Apart from that, Sun also had to come to terms with Huobi users, who withdraw more than US$100 million from the platform last week. This is due to increased solvency problems. Sun, which is the majority shareholder of Huobi, ultimately decided to move US$100 million USDC and USDT from Binance to Huobi.