Breaking News: Stablecoin USDR Loses Its Stability to the Dollar and Drops to $0.50

Crypto News – On Wednesday, a so-called stablecoin lost its peg to the US dollar and saw its value fall by 50% in a matter of hours.

Breaking News: Stablecoin USDR Loses Its Stability to the Dollar and Drops to $0.50

On Wednesday at 7:53 a.m. ET, USDR, a “rebasing” stablecoin released by asset tokenization platform Tangible, traded for $0.996 before falling to just $0.50 by midday. On its official X account, Tangible outlined its 4-step plan to rectify the situation.

It’s an ongoing situation. We’ll have announcements soon about post-mortem and real estate liquidations to replenish DAI to make users whole.

Jag Singh, co-founder and CEO of Tangible

With tokenized real estate as part of its reserve composition, USDR stands out. The coin guarantees holders yield using rental income from such real estate holdings in addition to serving as a dollar equivalent. USDR’s current yield is listed as being 6.38% on Tangible’s website, whereas TNGBL, the company’s native token, has an APY of 10.00%.

What is a Stablecoin? What Does It Mean to Lose Stability?

In order to preserve price parity with comparatively stable assets, such as fiat currencies like the dollar, stablecoins were created. Instability in the asset reserves supporting stablecoins or a failure to fulfill holder redemption requests as they come in are the two main reasons why stablecoins lose their peg. However, there may be other reasons.