USD1 stablecoin loses $401 million: almost $200 million traces back to a single address

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.The market capitalisation of the dollar stablecoin USD1 has fallen 9.1 percent in two weeks without the price losing its dollar peg. Just under $200 million of the redemptions came from a single address, according to Onchain Benchmark, and its owner is unknown.The stablecoin USD1 has shrunk by roughly $401 million in two weeks. Its market capitalisation fell from about $4.43 billion on October 6 to around $4.02 billion, a drop of 9.1 percent. The dollar price held steady throughout: the token traded consistently between $0.998 and $1.000. What shrank, then, was not the price but the number of tokens in circulation. Who triggered that decline is the striking part. According to an analysis by the blockchain research outfit Onchain Benchmark, just under $200 million of the redemptions trace back to a single address whose owner is unknown. For holders in Germany, a practical question hangs on this: what rights do you have against the issuer when a stablecoin shrinks quickly? What ha...