Real USD Stablecoin (USDR) Loses Peg to USD
In a recent development, the Real USD (USDR) stablecoin has lost its peg to the U.S. dollar, causing its value to plummet to just $0.5. This sudden depegging has resulted in a significant drop in market capitalization for USDR and its associated balance token, TNGBL.
Liquidity Issue Cited by TangibleDAO
TangibleDAO, the entity responsible for USDR, has cited a liquidity issue as the cause of the stablecoin’s rapid depreciation. Within three hours of the depegging event, USDR’s market capitalization experienced a 50% decrease.
Backing and Assets
USDR was issued by TangibleDAO and was previously backed by various Dai (DAI) stablecoins and altcoins. Additionally, it had a portfolio comprising more than 250 real estate properties in the United Kingdom.
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…
Hot Take: The Implications of USDR’s Depegging
The depegging of the Real USD stablecoin (USDR) from the U.S. dollar has raised concerns about its stability and trustworthiness. With a rapid depreciation and significant drop in market capitalization, investors are left questioning the reliability of stablecoins backed by real estate assets. This incident highlights the importance of robust liquidity management and transparency in the stablecoin ecosystem. It also serves as a reminder that stablecoins are not immune to risks and can experience sudden value fluctuations. As the crypto industry continues to evolve, it is crucial for stablecoin issuers to address these challenges to maintain trust and stability in the market.
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