Schlagwort: crypto business

• USDR suffered a liquidity crisis, revealing its illiquid assets.
• A trader lost everything swapping USDR for USDC during the crisis.
• An MEV bot profited $107,002 from the arbitrage opportunity.

The Real USD (USDR) stablecoin recently found itself in the eye of a storm, revealing the pitfalls of the DeFi space.

A liquidity crunch on October 11 led to a trader swapping 131,350 USDR for 0 USDC, incurring a complete loss. Here’s what transpired:

The USDR liquidity crunch

USDR, a real-estate-backed US dollar stablecoin, faced a liquidity crisis when users requested over 10 million stablecoins in redemptions.

Although it was advertised as 100% backed, a shocking revelation emerged: less than 15% of its $45 million in assets were backed by liquid TNGBL tokens, with the majority relying on illiquid tokenized real-estate assets.

The illiquidity of these real-estate assets stemmed from their tokenization under the ERC-721 standard. This unique standard made it nearly impossible to fractionalize these assets, creating a liquidity conundrum for investor redemptions. Furthermore, the underlying real estate properties could not be swiftly sold to meet withdrawal requests. Consequently, the USDR treasury was incapable of honouring these redemptions, resulting in a crisis of confidence among investors.

Why USDR depegged despite being fully backed: Using Illiquid asset backing liquid Asset

– USDR is 100% backed. 50% of them come from stablecoins and the remaining comes from Real-Estate

– When there is a bank-run (Huge Redemption of USDR), the Stablecoin liquidity in the… https://t.co/xOrsa5gpKU pic.twitter.com/OYhQ0twUUd

— Tom Wan (@tomwanhh) October 12, 2023

The costly DEX swap

During the USDR liquidity crisis, a trader attempted to withdraw their USDR holdings by executing a swap on the BNB Chain via the decentralized exchange (DEX) OpenOcean. The catch was the severe depegging of USDR, which had plummeted nearly 50% from its par value due to the liquidity crunch.

In a disastrous turn of events, the trader received a grand total of 0 USDC in return for their 131,350 USDR. This meant a complete and crippling loss on their initial investment. In the volatile world of DeFi, where slippage rates on DEXs can reach up to 100% during periods of poor liquidity, such incidents serve as a stark reminder of the risks at play.

Due to the decoupling of the stablecoin USDR, this guy accidentally swapped 131,350 $USDR for 0 $USDC while panic selling $USDR.

And a MEV bot successfully arbitraged $107K.https://t.co/FHOJtaGcSDhttps://t.co/IYtoqar29N pic.twitter.com/USLF1qkVDK

— Lookonchain (@lookonchain) October 12, 2023

The story took an interesting twist as a maximal extractable value (MEV) bot swooped in to seize an arbitrage opportunity. Recognizing the substantial price discrepancy, this automated trading algorithm profited handsomely, netting a staggering $107,002 in gains through a well-timed arbitrage trade.

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• Shiba Memu is a new meme coin that’s leveraging the AI revolution.
• The project is in presale and has raised more than $3.8 million.
• Dogecoin (DOGE) tops meme coins buts its price has struggled as daily transactions sink.

Dogecoin is struggling to keep prices above a key support level even as the leading meme cryptocurrency records a sharp drop in daily transactions. Meanwhile, the Shiba Memu (SHMU) presale has hit $3.8 million as price increases to $0.0334.

Here we examine the price outlook for the two tokens amid a broader lull in a crypto market that’s mirroring market reaction to the latest US inflation report. Stocks traded mixed after the Consumer Price Index (CPI) showed prices rose 0.4% versus 0.3% expected in September, with a 3.7% increase over the past year to match that of August.

Shiba Memu – an AI revolution for meme coins

Shiba Memu is a new cryptocurrency that combines the increasingly powerful artificial intelligence (AI) narrative and blockchain to bring a unique approach to crypto memes. The native token SHMU, launched on the Ethereum blockchain, will have a supply of 1 billion tokens, 85% of which is available to the community via a presale.

With AI at the heart of this new meme coin, the idea of a self-sufficient crypto ecosystem is envisioned. The Shiba Memu whitepaper outlines a project that’s unlike other meme coin projects – one that’s leveraging AI technology to create a powerful marketing system that doesn’t rely on celebrity or influencer hype to gain traction.

The AI dashboard will take care of this, with SHMU holders benefiting from additional utility as token staking and provision of liquidity to the Shiba Memu pool.

Dogecoin price: DOGE outlook as daily transactions sink

Dogecoin leads meme cryptocurrencies with a market cap of nearly $8.2 billion. DOGE’s status as the sector’s OG has seen it attract support from among others, Tesla CEO and X (formerly Twitter) owner Elon Musk.

However, the cryptocurrency has struggled to break to the coveted $1 level – its all-time high of $0.73 was reached in May 2021. Currently, Dogecoin price has settled below $0.58 with the 5.6% dip in the past 30 days indicative of this fact. It an outlook that echoes Bitcoin’s recent lull since the breakdown from $30k.

One indicator of the performance over the past few weeks is the 7-day average of Dogecoin’s daily transactions. According to on-chain data, the network has been recording an average of 37.3k daily transactions — which IntoTheBlock says shows a sharp decline from highs of 2.1 million in June and “a secondary spike of 616k in July.”

Is Dogecoin going to see a surge network activity as was seen in the previous quarter? And can this be reflected in DOGE price? 

The current outlook suggests this scenario is possible, with investors likely to watch out for an upcoming event around the dog meme that inspired Dogecoin’s creation. That event is scheduled for November 2. If price picks up in a bull market amid other positive triggers, the key short term target remains $1.

Shiba Memu price: can SHMU reach $1 in 2024?

As noted, Shiba Memu has attracted over $3.8 million from global investors since its presale went live. The presale price has increased daily at 6 pm GMT, a novel approach that has seen the participation spike as early birds scoop SHMU at what’s likely to be bargain buys.

Price is set to jump from today’s $0.0334 to the final presale price of $0.0379. When the tokens launch on crypto exchanges, increased demand could unlock upside moves similar to what has greeted other meme coins in the market.

If Shiba Memu does a 2x after its launch, that could push its price to above $0.1. Then, with projections for crypto and AI huge going into 2024, SHMU could trade higher and target the $1 level. However, this could depend on prevailing market conditions and other factors specific to the project.

To buy Shiba Memu or learn more, visit the project’s presale page.

The post Dogecoin and Shiba Memu outlook as key DOGE metric stalls appeared first on CoinJournal.

• Shiba Inu (SHIB) is facing a sharp decline in price and whale activity.
• SHIB’s decline is raising doubts about the meme coin’s future in a competitive crypto market.
• Memeinator, a new AI crypto project, aims to dominate the meme coin market with its MMTR token.

In the volatile world of cryptocurrency, Shiba Inu (SHIB) has recently faced a dramatic decline, with its price hovering near yearly lows.

SHIB’s struggles have raised concerns about its future in the crypto market. The once-soaring meme coin has faced several challenges, and its latest setback comes in the form of a mass exodus of large holders, often referred to as “whales.”

Shiba Inu faces whale exodus

Shiba Inu has witnessed a significant drop in the number of substantial transactions on its network, with large holders reducing their activity according to data from Etherscan. In the recent past, the number of these transactions significantly dwindled, marking a period of inactivity rarely seen in the meme coin’s history.

Several factors appear to be contributing to this sudden decline in whale activity.

One potential reason for this exodus is the waning interest in highly volatile assets like SHIB. With Bitcoin’s dominance on the rise, many investors might be shifting their focus from riskier assets to more established ones. Bitcoin’s stability and status as a flagship cryptocurrency have drawn investors looking for safer options in these uncertain times.

Additionally, SHIB’s price performance over the past few weeks has been less than inspiring. Currently trading at $0.000006861, the meme coin has dropped by over 33% since the start of 2023.

This underwhelming performance could discourage large holders, leading them to reduce their activity or even offload some of their SHIB holdings.

The general decline of meme coins

The decline in whale activity within the Shiba Inu ecosystem mirrors a broader sentiment shift in the cryptocurrency market. As the crypto space matures, investors are increasingly discerning, gravitating toward assets with strong fundamentals and practical use cases.

Meme coins like Shiba Inu, driven primarily by social media hype and celebrity endorsements, have a difficult time sustaining long-term interest and growth. While SHIB had its moments in the spotlight, the current landscape requires more than just social media buzz to maintain a coin’s value.

In such a competitive and evolving market, meme coins must adapt to changing dynamics, provide genuine utility, and offer something unique to investors to maintain and grow their user base.

Memeinator MMTR Token: a new AI-driven meme coin

Amid Shiba Inu’s challenges and declining interest in meme coins, a new project known as Memeinator has entered the scene with a bang following the launch of its token presale.

Memeinator, a self-proclaimed “ultimate meme coin,” plans to dominate the meme coin market with the aid of AI technology, viral marketing, and a clear mission: to hit a $1 billion market cap.

The project aims to launch new products, including the Memeinator game and the Memescanner, along its journey.

MMTR, the token associated with the Memeinator project, is positioned to become a staple among top-tier meme coins with genuine utility. The tokenomics of the MMTR token include allocations for presale, marketing, development, exchange liquidity provision, and a competition pool.

Memeinator has outlined a roadmap for its development, consisting of several phases. The project started by forming a team and building a community. It is now developing its blockchain as it conducts its token presale and it also prepares to engage in powerful marketing. As it progresses, Memeinator will partner with influencers and platforms, introduce staking, and release exclusive NFTs.

The later phases of Memeinator’s roadmap include listing on Tier 1 exchanges, launching the Memescanner, and releasing the Memeinator game.

The Memeinator team has made it relatively straightforward for potential investors to participate in the MMTR token presale. By connecting their crypto wallet to the Memeinator presale site, investors can send the desired token to their wallet, supporting multiple cryptocurrencies, including ETH, USDT, and USDC.

Participants can then swap their chosen token for MMTR, making sure they have the necessary cryptocurrency in their wallet to cover transaction fees. Investors will be able to claim their MMTR tokens after the presale concludes.

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