Cardano-powered Djed stablecoin crashes to $0.13

Cardano’s recently-launched stablecoin Djed (DJED) reportedly crashed to about $0.13 on March 1.

Crypto news blog Whale Chart reported the crash on March 3 but didn’t give any details, only briefly stating, “Cardano stablecoin DJED flash-crashed to $0.13.”

Cardano stable coin DJED flash-crashed to $0.13.

— whalechart 🐳 (@WhaleChart) March 3, 2023

After investigating Whale Chart’s claim, crypto.news found that several crypto price tracking platforms, including CoinGecko and CoinStats, had recorded the flash crash.

Per data from CoinGecko, the momentary crash happened between 8 and 9 a.m. EST on March 1, when the Djed’s price suddenly dropped to as low as $0.1289. However, after about an hour, Djed returned to its previous $1.00 level.

The situation was similar on the CoinStats website, with data showing the stablecoin’s sudden drop at around the same time and day as reflected on CoinGecko.

Surprisingly, one of the leading crypto price tracking platforms, CoinMarketCap, had no data reflecting Djed’s flash crash.

Upon scouring the website, crypto.news found that between 8 and 9 a.m. EST, when the crash reportedly occurred, CoinMarketCap had Djed’s price fluctuating between $0.9999 and $1.0045. Therefore, there is no evidence of Djed’s flash crash on CoinMarketCap.

Due to the conflicting data, several members of the online crypto community accused Whale Chart of spreading fear, uncertainty, and doubt (FUD) regarding the stablecoin.

Others tried explaining the incident as an “error in integration” between the WingRider AMM exchange and CoinGecko, resulting in the incorrect Djed price showing.

There was an error in integration between Wingriders and Coingecko, and price displayed incorrectly.

— Vlad Ovadenko (@ovadenko95) March 3, 2023

Djed is now the fourth-largest project on Cardano

Whether a system malfunction caused the flash crash, Djed has since reclaimed its previous levels.

At the time of writing, the stablecoin was trading between $0.999247 and $1.00 on various platforms.

According to CoinMarketCap, Djed had a one-day trading volume of $116,152 and a fully diluted market cap of $1,002,179,336.888.

Since its launch on Jan. 31, Djed has become the fourth-largest Cardano network project. The protocol’s creators have said they intend to increase its utility and acceptance in the coming weeks.

Several platforms, such as the Cardano NFT project NMKR, have also declared their support for the ADA-backed stablecoin.