Yet Another Stablecoin Loses Dollar Peg
•
October 11, 2023 9:44 pm
•
Comments
Yet another stablecoin has lost its dollar peg and subsequently plummeted in value.
According to sources, USDR, a stablecoin backed by real estate, decoupled from the U.S. dollar on Wednesday before losing 50% of its value.
Tangible, the company that issues USDR, assured users that the decoupling was due to a liquidity issue and that all redemptions were still backed by their real estate holdings.
Here’s what we currently know about the de-pegging of the USDR stablecoin:
On the evening of October 11, 2023, the Real USD (USDR) stablecoin issued by TangibleDAO – a Real World Asset (RWA) project – lost nearly 50% of its value. According to TangibleDAO's website, the asset is said to be "a new currency backed and backed by real estate, offering… pic.twitter.com/hKQd6oGd9M
— Forward Robin (@ForwardRob37930) October 12, 2023
Tangible, the issuer of USDR, issued this statement on Wednesday:
“An update on USDR: Over a short period of time, all of the liquid DAI from the USDR treasury was redeemed.
This led to an accelerated drawdown in the market cap. Combined with the lack of DAI for redemptions, panic selling ensued, causing a depeg. We’re working on solutions which we’ll share shortly.
In the meantime, this is a liquidity issue. The real estate and digital assets backing $USDR still exist and will be used to support redemptions.
Review the Transparency Program in our project docs for substantiation on the real estate backing.”
An update on $USDR
Over a short period of time, all of the liquid $DAI from the $USDR treasury was redeemed.
This lead to an accelerated drawdown in the market cap.
Combined with the lack of DAI for redemptions, panic selling ensued, causing a depeg.
We’re working on…
— Tangible 🏠💙 (@tangibleDAO) October 11, 2023
Coin Telegraph reports:
USDR experienced a flood of selling at around 11:30 am UTC, driving its price as low as $0.5040 per coin. It recovered slightly, to around $0.53 shortly afterward.
Despite this loss to the treasury, the app’s official website stated on October 11 at 9:57 pm UTC that its assets are still worth more than the entire market cap of the coin.
Crypto community member Elie Azzi writes: “The recent de-pegging of Real USD (USDR), a stablecoin backed by real estate assets, highlights the need for critical evaluation in the world of digital assets. When considering any cryptocurrency, it’s vital to look beyond enticing promises.”
The recent depegging of Real USD ($USDR), a stablecoin backed by real estate assets, highlights the need for critical evaluation in the world of digital assets. When considering any #cryptocurrency, it's vital to look beyond enticing promises.
— Elie Azzi (@AzziElie1) October 11, 2023
Colin Wu explained: “Real USD (USDR), a Polygon-based stablecoin, has become unpegged and is currently only $0.63. TangibleDAO, the entity behind USDR, said it was a liquidity issue and that the real estate and digital assets supporting USDR still exist and will be used to support redemptions.”
Real USD (USDR), a Polygon-based stablecoin, has become unpegged and is currently only $0.63. TangibleDAO, the entity behind USDR, said it was a liquidity issue and that the real estate and digital assets supporting USDR still exist and will be used to support redemptions.…
— Wu Blockchain (@WuBlockchain) October 12, 2023
The Block added:
The stablecoin is now undercollateralized if you exclude the project’s native TNGBL token, according to its dashboard. If you include this token, it has a collateralization ratio of 102%.
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.