Stables Labs’ USDX stablecoin lost its 1:1 dollar peg, plunging to as low as $0.3887.
Whale wallet 0xe454 spent $800,000 USDT to buy 933,241 USDX at an average price of $0.8572, shortly after the drop, aiming to profit if USDX restores its peg.
Despite submitting the tokens for redemption, which is expected to yield about $135,000 profit, the whale’s redemption has been pending for over three hours.
Stables Labs’ USDX, a stablecoin meant to hold a 1:1 peg with the U.S. dollar, slipped sharply from its target value, dropping to $0.3887 earlier today, according to on-chain tracker Lookonchain.
A crypto whale controlling wallet address 0xe454 noticed the drop and quickly moved to take advantage of it. The investor spent 800,000 USDT to buy 933,241 USDX at an average price of $0.8572 each. This happened soon after the price dropped, showing that the whale wanted to “buy the dip” and make a quick profit if USDX returned to its normal value.
Just days earlier, the same address had bought 1.4 million USDX during a similar dip and submitted all the tokens for redemption. After the latest buy, the whale again sent the tokens for redemption, expecting to make an estimated $135,000 in profit if the process is completed successfully.
However, even after three hours, the redemption has not yet been completed. That delay has started to raise questions among traders and onlookers about what might be causing the hold-up.
Normally, stablecoins allow holders to redeem or exchange their tokens easily and quickly. A delay can sometimes mean there is a technical issue, not enough liquidity, or pressure in the system.