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It's being reported by CCN that bitUSD, a stablecoin that is supposed to be pegged 1:1 to USD much like Tether, has insufficient liquidity in its market now and coins can only be redeemed at market value which is currently about $0.70. This has lead to some declaring the stablecoin "dead."
Interesting week for stablecoins.
— Myles Snider (@myles_snider) December 14, 2018
Recently BitShares bitUSD went into "global settlement," meaning that users can no longer borrow bitUSD from the chain, but they can convert it into collateral (BTS) at the global settlement price, currently about $0.70. pic.twitter.com/YJamqqKQi6
Because of insufficient liquidity, bitUSD is in "global settlement" mode meaning no new coin can be minted but only redeemed at the current price. As we can see from Coin Market Cap, that price is still about $0.69 at the time of this writing.
It may be a bit early, but some were already coming out to call this the death of bitUSD:
RIP bitUSD
— Bryan Gmyrek (@physic) December 14, 2018
Investors can of course wait to see if the problem is handled by the market in time. The price may again rise and the coin could regain a 1:1 USD peg. It has happened before with Tether.
Stick with Chepicap for all the latest concerning bitUSD and its stablecoin value!