- Neutrino Dollar has lost its peg to the dollar over the last day.
- USDN lost its peg in April when rumors of price manipulations started floating around.
- Every time that USDN depegged from the dollar there has been a crash in the Bitcoin price.
The algorithmic stablecoin known as Neutrino Dollar (USDN) has lost its peg to the dollar over the last day to now trade at $0.9241, according to CoinMarketCap. This marks the fourth time this year that the stablecoin experienced a tough time trying to maintain its peg to the dollar.
This comes at a very unstable time in the cryptocurrency community where investors are trying to navigate and recover from other traumatic stablecoin incidents like the Terra crash that wreaked havoc in the whole industry.
One of the times when USDN lost its peg was in April when rumors of price manipulations started floating around. In this case, the price dropped to $0.78. A mere month after this, USDN once again started showing signs of weakening when it fell to $0.82. The same scenario repeated again in June when the USDN price fell to $0.93 per token.
In an attempt to rectify the stability issues for USDN, the team behind the stablecoin initiated a vote to implement changes within the protocol’s parameters.
After the vote, new mechanisms were implemented to improve the economics behind the protocol. Some of the alterations that were implemented include changes in the maximum swap amount, improvements with regards to rewards distribution and the backing ratio protection mechanics.
The fact that USDN has depegged once again is making some people in the industry frantic. According to the Twitter user known as BareNakedCrypto, every time that USDN depegged from the dollar there has been a crash in the Bitcoin (BTC) price.