Falcon USD (USDf) has encountered stability issues in its short existence in the cryptocurrency market, raising concerns among analysts and investors.
Drop in USDf Value
USDf, managed by DWF Labs, dropped below its $1 peg, reaching $0.98. Currently, the market value of USDf is approximately $540 million.
Criticism of Reserves and Transparency
Risk consultancy LlamaRisk has raised concerns about including USDf as collateral on lending platforms, highlighting the lack of transparency in USDf’s reserve structure and the quality of assets used as collateral.
DWF Labs' Response and Situation Analysis
Andrei Grachev, managing partner of DWF Labs, disclosed information about USDf’s reserve structure, noting that 89% is backed by stablecoins and Bitcoin, while the remaining 11% consists of altcoins. Grachev also stated that "some competitors are running coordinated FUD campaigns."
The situation surrounding Falcon USD (USDf) raises important questions about the transparency and reliability of stable cryptocurrencies. Attention to reserves and their quality is becoming a significant aspect for investors.
