While the plunge of TerraUSD (UST) and Luna shook the global cryptocurrency market, another stable coin plunged as the dollar value and pegging were cut off.
According to CoinMarketCap, a cryptocurrency information site, the stable coin “DEI,” designed to link the value of one coin to one dollar, is trading around $0.57 as of 9 a.m. on the 17th.
Stable coins have been designed to link their values to real assets such as dollars, which has the advantage of maintaining stable asset value.
Unlike major stable coins such as Tether that maintain value with dollars as collateral, UST is an algorithm-based stable coin that maintains value with Luna as collateral.
The same is true of DEI issued by DEUS Finance.
DEI adopts a method of maintaining only a part of the coin distribution as a reserve, and supports its value with 80% of other stable coins such as USD Coin (USDC) and 20% of Deus Coin, its own separate cryptocurrency.
Deus Finance said on Twitter that it is working to restore DEI’s dollar fixation, but it has not prevented further price declines since then.
DEI’s fall is seen as an aftershock of last week’s UST and Luna crash.
According to CoinMarketCap, the value of UST has remained at one-tenth of the level since it plunged last week due to a loss of fixed value with the dollar.
As the issuance of Luna increased to defend the UST price amid the dumping atmosphere, the price of Luna, which reached $119 last month, fell to the level of 0.01 to 0.02 cents, and is virtually close to ‘0’.
Since then, Tether, a representative stable coin, has been shaken at one time, but it has regained stability as the company withdrew Tether in dollars without any problems. The price of the tether, designed to link its value to $1 per piece, once fell to $0.950 on the 12th and later recovered to $0.998.
However, Luna was in the top 10 in the virtual currency market capitalization list last month, and UST once ranked third among stable coins with a market capitalization of $18 billion, while DEI was relatively small with a market capitalization of $63.5 million.