HTX to Discontinue Trading for 14 Cryptocurrency Pairs Starting September 12

HTX will delist 14 trading pairs, including those with USDD stablecoin and other notable cryptocurrencies, on September 12, 2024. The company has not disclosed the specific reasons, but such moves are common to maintain liquidity and strategic alignment. Users will need to adjust their portfolios and execute trades before the deadline to avoid disruption. This decision may impact liquidity and trading activities for the involved tokens.

In the rapidly evolving world of cryptocurrency exchanges, HTX, formerly known as Huobi, has recently made a significant move that has sent shockwaves through the industry. On September 12, 2024, the exchange intends to delist 14 trading pairs that involve the USDD stablecoin and other cryptocurrencies [1]. This decision comes amid growing concerns over the USDD's stability following substantial collateral withdrawals by the TRON DAO Reserve [2].

The affected trading pairs include popular assets like DOGE/USDD, NEAR/USDD, and EOS/USDD. As a result, users holding these assets will need to adjust their portfolios and execute trades before the deadline to avoid disruption [1]. This action underscores the importance of maintaining liquidity and strategic alignment for exchanges, particularly in times of uncertainty.

Recent developments surrounding the USDD stablecoin have led to increased scrutiny from the market. In August, the TRON DAO Reserve withdrew approximately $750 million in Bitcoin, significantly reducing the amount of Bitcoin backing the stablecoin [2]. This withdrawal left USDD primarily reliant on TRX, TRON's native cryptocurrency, for backing.

In response to these concerns, TRON founder Justin Sun assured consumers that the USDD remains stable and functions similarly to DAI of MakerDAO [2]. He argued that the reserve's collateralization rate is not very efficient to maintain above 300 percent, and users can withdraw surplus collateral as long as the system's requirements are met.

Despite these assurances, the market's caution is evident in HTX's decision to delist USDD pairs. As investors continue to question the stablecoin's future, exchanges must make difficult choices to protect their users and maintain stability in the market.

References:
[1] igaming.org. (2024, September 9). HTX to Delist Multiple USDD Trading Pairs Despite Concerns Over Stablecoin Backing. https://igaming.org/crypto/htx-to-delist-multiple-usdd-trading-pairs-despite-concerns-over-stablecoin-backing/
[2] cryptonews.net. (2024, September 9). Crypto Exchange HTX to Delist Several USDD Trading Pairs. https://cryptonews.net/news/market/29750744/