Crypto Market Live: USDR Stablecoin Depegs to $0.53, But Team Vows to Provide Solutions.
USDR stablecoin depegs to $0.53, but team vows to provide solutions

Crypto Market Latest: USDR Peg to U.S. Dollar

The Tangible protocol project team has revealed that its USDR stablecoin, backed by a mixture of cryptocurrencies and real-estate holdings, lost its peg to the U.S. dollar after a surge of redemptions drained its liquid assets, such as Dai (DAI).

Mostly traded on the Pearl decentralized exchange (DEX) running on Polygon, USDR experienced a rapid market cap drawdown due to all the liquid DAI being redeemed from its treasury in a short period of time.

The crypto market is now witnessing the effects of USDR’s peg to the U.S. dollar, with crypto finance and crypto coin prices today being impacted. As the crypto market live continues to evolve, the crypto market may see further fluctuations in the near future.

Crypto Market Latest: USDR Experiences Flood of Selling

At around 11:30 am UTC, the crypto market experienced a major selloff of USDR, driving its price as low as $0.5040 per coin. The coin eventually recovered slightly, to around $0.53 shortly afterward.

In spite of the 50% drop in value, the project’s developers have promised to provide “solutions” to the problem, claiming that it was merely a liquidity issue that has temporarily hampered redemptions.

“This is a liquidity issue,” they stated. “The real estate and digital assets backing $USDR still exist and will be used to support redemptions.”

Despite the losses, the app’s official website reported on October 11 at 9:57 pm UTC that its assets are still worth more than the entire crypto market cap of the coin.

Crypto Market Conditions in October 2022

As of October 11, USDR’s collateral consists of 14.74% Tangible (TNGBL) tokens, which are part of the coin’s native ecosystem. The remaining 85.26% are reportedly backed by real-world housing and an “insurance fund.”

Stablecoins are designed to maintain a $1 value on the open market. However, they can sometimes lose their peg during extreme market conditions. For instance, Circle’s USDC (USDC) dropped to $0.885 per coin on March 11 due to several bankruptcies in the U.S., but it regained its peg on March 14. In May, Terra’s UST also lost its peg and never recovered. According to Coinmarketcap, it is currently valued at $0.01 per coin as of October 11.

Categorized in:

Tagged in: