EEUR is over! – That descent into hell of stablecoin TerraUSD (UST) in May 2022 demonstrated how stablecoin sticks on their copied asset can be insecure. Especially for stablecoins algorithmic. This time it is the euro-pointed stablecoin that is called EURon the blockchain network Cosmos (ATOM), which has just been stopped shortbefore another tragedy occurs.
Crypto winter was ended by EEUR stablecoin on Cosmos
The market of Bitcoin (BTC) and cryptocurrencies have yet to recover from that annus horribilis what will have been 2022. Digital asset prices are still submerged for this long crypto winterand the latter has just made one new victim.
The project group e-moneywhich operates in the blockchain ecosystem Cosmosannounced that she threw in the towel for its euro stablecoin, theEUR. Thus explains e-Money stop broadcasting of its EURR from this Monday, January 9, the same day as its publication.
“Important Notice: Withdrawal of EEUR stablecoin.
e-Money has decided to stop issuing its euro-denominated stablecoin.
All these stablecoins remain fully tradable and redeemable. Read our Medium post and choose one of the stated redemption options. »
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Exchange in cryptos still possible, even in euros for whales
As mentioned by the tweet above, this withdrawal from the EEUR is thankfully happening in good order. What is all the more reassuring when the very uncomfortable UST spectrum of Terra (LUNA) still haunts the memories of the cryptosphere.
Although the issuance of EEUR was therefore stopped dead on January 9, owners of the stablecoin based on the common European currency will still have two redemption options the following (up to March 6, 2023deadline!):
- for “small amounts”e-Money recommends using the Decentralized Exchange (DEX) Osmosis. EEUR can be exchanged there for other cryptocurrencies such asATOM (native token of Cosmos) or a stablecoin of the dollar asUSDCe.g ;
- and for “larger quantities” (equivalent to more than 100,000 euros), EEUR stablecoins can be direct exchanged for euros, via e-Money’s redemption services – which will however require going through identity verification (KYC) first mandatory.
So these will be “current market conditions” cryptos, especially difficult, which will have overcome EEUR. In fact, e-money rules “careful and responsible” the closure of its stablecoin of the euro, while there is still time without drama. Considering the number of bankruptcies, as quick as they are painfulas the cryptosphere will have experienced last year, we can effectively qualify this current orderly pullback as being wise. Very clever even.
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