The much anticipated algorithmic stablecoin on Cardano, Djed, has gone live. But the scammers didn’t miss this opportunity.
The collapse of UST, the algorithmic stablecoin on the Terra ecosystem, drove negative sentiment for this category of stablecoins. This collapse last year drove the crypto industry deeper into a bear market, and investors lost billions.
The COTI team, with the help of Input Output Global (the creators of Cardano), worked for a year to re-establish trust in algorithmic stablecoins. Finally, they announced “a new era of stablecoins” with the launch of Djed.
Djed Goes Live on the Cardano Mainnet
The Djed ecosystem has joined with over 40 partnerships to bring the adoption of the new stablecoin. It is listed on decentralized exchanges such as MinSwap, Wingriders, and MuesliSwap.
Centralized exchanges have not listed Djed yet. But Bitrue announced that it would be the first centralized exchange to list the token.
To tackle the negative sentiments of algorithmic stablecoins, the team has built Djed to be overcollateralized by 400%-800% by Cardano’s native coin ADA and reserve coin Shen. The on-chain proof of reserves will be available for investors to check the reserve ratio.
The team also mentioned the plan to add other assets like Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH) as reserves along with ADA.
According to the official website, the price of Djed is 2.67 ADA, and the price of Shen is 1.08 ADA. Presently it has a 783% reserve ratio supported by around 20 million ADA tokens.
Scammers Making the Most out of the Stablecoin Launch?
The Djed launch suffered a few hitches, as community members lost ADA to scammers. As the website does not display the policy ID of Shen and Djed, scammers took advantage and stole over 20,400 ADA from unaware investors within 15 minutes of launch. The Discord community criticized the team for not displaying the Policy ID.
Some users also experienced an error with the Djed website, saying, “Service is currently unavailable.” However, the Discord moderator informed the community that the team was working on the error.
Presently, there is not much impact on ADA price. But, our analysis suggests that a short-term correction is on the horizon.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.