DEI price crash news: Another crypto stable coin crashes after TerraUSD (UST) – Details Here
DEI Price crash latest News: Deus Finance’s stablecoin dei (DEI) is another so called stable coin to lose its peg with the US dollar, dropping below 60 cents, like TerraUSD (UST). DEI lost its peg on Monday and it is far from regaining its near dollar value.
At the time of writing on Tuesday, DEI price was $0.5657. As per the data on CoinGecko, DEI price has declined by over 42 percent in the last 7 seven days. In the last 24 hours itself, DEI value dropped by over 15 per cent.
DEI price has failed to rise even as Deus on Monday said on its official Telegram channel that the peg will be restored in the next 24 hours.
What is DEI crypto?
DEI operates within a Fantom-based decentralised finance (DeFI) project called Deus. Users can mint 1 DEI by depositing collateral worth $1 in the form of assets like USDC, Fantom(FTM), DAI, WBTC or Deus.
Like UST, DEI is also an algorithmic stable coin. Arbitrage bots constantly monitor and adjust the collateral ration of DEI. In order to ensure the peg, these bots continually trade $1 worth of underlying token for 1 DEI or vice versa.
According crypto market watchers, DEI price crashed probably after traders exchanged their DEI tokens for USDC.
The current crash in the global crypto market has exposed the vulnerabilities of algorithmic stable coin. In theory, they are supposed to be automatically pegged to the price of another cryptocurrency.
Meanwhile, the price of Deus has fallen by around 26 percent in the last 24 hours and by 64 percent in the last 7 days. The price of Fantom (FTM) has crashed by over 68 percent in the last one month.
The Terra debacle has led to sell-off in many other so called stable coins like DEI, Waves’ stablecoin USDN.
TerraUSD is now worth just around 12 cents while the per token price of Terra (Luna) has become almost zero from the recent high of over $100.
((Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)