Polygon-based stablecoin crashes 46% from the pegged value
USDR stablecoin is currently trading below 42% of its pegged $1 value.
Real USD (USDR) is a new stablecoin, launched this year. Tangible Dao is responsible for this stablecoin launch. The backend reserve funds behind this stablecoin manage real assets. In short, the backend company uses the USDR stablecoin’s reserve funds to purchase real estate assets, instead of holding in government bonds, crypto assets, holding in banks, or lending, unlike other top stablecoin companies.
On 11 Oct 2023, USDR stablecoin crashed by 49% & the trade value reached $0.51 from $1. The current trade price of this stablecoin is $0.59 & this trade price of this stablecoin is 42% down from its actual pegged value.
Following this situation, the Tangible Dao reported that the treasury currently holds zero DAI, with the only liquid assets being a roughly $6.2 million insurance fund for a circulating supply of 45 million USDR — worth $45 million when pegged.
In short, the company needs $45 million to bring the pegged value of this stablecoin back to $1 and obviously, it will not be easy for the company because of lack of liquid funds.
UST collapse: Biggest stablecoin collapse
In the history of the crypto sector, the biggest stablecoin collapse incident happened in May 2022.
TerraUSD (UST) stablecoin was the third top-ranked stablecoin in the crypto market at the beginning of last year. That stablecoin was integrated with another crypto token Luna coin via a protocol, however later Investigations revealed that there was no protocol instead there was a firm which was manipulating the trade price of UST & Luna.
Under the high volatility situation both the tokens collapsed badly.
The current trade price of UST stablecoin is $0.011 & this trade price of UST stablecoin is 98.9% down from its $1 pegged price.
This stablecoin was developed by a South Korean blockchain firm Terraform Labs. Currently, Terraform Co-founder Do Kwon is in Montenegro on bail. In early of this year he was caught at the Montenegro airport with forged ID & passport.
The South Korean enforcement agencies are waiting for the extradition of Kwon to investigate the whole crypto fraud to find the main culprit behind Terra crypto fraud.
Read also: Alameda ex-CEO says SBF ordered her to falsify the company’s financial figures
