The Stablecoin $dUSD From DeFiChain Lost Its Peg Almost One Year Ago

By Cryptonator`s | Cryptonator`s Junk Box | 23 Jan 2023

In early May 2022, TerraUSD, an algorithmic stablecoin, had decoupled from its $1 peg, and with it, the whole Terra Luna Ecosystem had collapsed. As Terra Luna had been a TOP 10 crypto project, the whole cryptocurrency space had been affected by its collapse.

At the same time also other smaller algorithmic stablecoins lost their peg of $1. Their effect on the overall crypto market was by far not as big as the implosion of the Terra Luna ecosystem.

One of these algorithmic stablecoins that had lost its peg was and still is $dUSD, the stablecoin from the DeFiChain Ecosystem.

What Is DeFiChain?

The DeFiChain Project was founded by Julian Hosp, a controversial figure in the crypto space. DeFiChain was created especially for Decentralized Finance Services and applications while being anchored to the Bitcoin blockchain.

DeFiChain’s Stablecoin $dUSD

A vital part of Decentralized Finance applications and ecosystems is a stablecoin as well as tokenized shares. DeFiChain issued its own algorithmic stablecoin with the ticker $dUSD. Like Terra Luna’s stablecoin, $dUSD lost its peg almost one year ago in early May 2022.

In November 2022, $dUSD reached an all-time low of 50 cents which is far away from being stable. Julian Hosp and its devoted DeFiChain community tried different kinds of changes to the token mechanism to solve the problem of the de-peg. So far with no success, $dUSD is still not back at its peg of $1.

Not only the native stablecoin, a vital part of the whole DeFiChain ecosystem is in trouble but also the tokenized stocks running on the DeFiChain.

Tokenized Stocks On DeFiChain

If you want to buy tokenized stocks from a company like Apple, Facebook or Tesla then you can buy them cheaper as tokenized stocks on the DeFiChain than on a regular stock market. The price differences between the tokenized and the real stock are so big that we can’t speak of any kind of arbitrage anymore.

No Way Out Of The Misery

Like many investors of Terra Luna also many investors of $dUSD got into serious trouble, trying to find a way out of their misery in some internet forums.

Julian Hosp is telling everyone for almost one year now that he is going to solve the issue with $dUSD and bring it back to its peg of $1. So far, he hasn’t been successful and I highly doubt it, even though the community has tried to fix the problem by making different changes to the token mechanics and the underlying protocol.

The problem of the de-peg still persists but at least there is one thing Julian Hosp had been successful with. With his narcissistic personality, he managed to sell lots of hopium to his followers. There are honestly still people around who are smoking the hopium he is selling and believe that it will be fixed someday. Tell this the investors of DeFiChain who already lost a lot of money.

#DeFighters Striking Back

If you complain publicly about the $dUSD issue or some other issue, you get quickly labeled as a hater, troll, or FUDer.

How toxic is this community?

A stablecoin has to be stable and a tokenized stock should somehow reflect the real price of the assets and not some moon prices. Here is one example of the DeFiChain community spirit. These Twitter users call themselves #DeFighters. If you say something bad about DeFiChain or their blond angel you get a visit from the DeFighters.

I think I understand the mechanics and the mechanics of $dUSD are obviously not working for a long time now. If the mechanics would have worked then $dUSD would have never lost its peg. So far, these scientific pros have also not been presented to me, only cheap Twitter Shills liking tweets for a $DFI token as a reward. For the record: Julian Hosp is surely not one of the scientific pros and I do not ask the people who are trying to sell me their own product.

Sorry, dear #DeFighters that I have to name things how they are, and to be honest, things are looking pretty shitty on the DeFiChain on all ends.

$dUSD has lost its peg for almost a year now. Why should this change anytime soon? I don’t smoke that hopium that Julian Hosp is giving out on Twitter. If everyone sells his $dUSD tomorrow, its value will rapidly go to Zero, nada, niente. This stablecoin is anything else but stable.

Why Is the DeFiChain Token $DFI not worthless yet?

I am actually wondering why $DFI, the main token of the DeFiChain ecosystem, still has any value, normally it should have gone closer to zero already. It is far away from its all-time high but still not at zero. I have just one explanation for this circumstance and these are all the degen traders who froze their tokens for ten years on CakeDeFi and can not sell their tokens.

My Final Conclusion

I hope that I could provide you with some useful information about the struggling DeFiChain project from Julian Hosp.

You can call me a hater, troll, FUDer, or whatever but I simply do not believe that Hops or its devoted community can change anything about it anytime soon. I am not buying that hopium from Julian Hosp or any #DeFighter on Twitter.

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