Recently, $NOTE, the stablecoin of Canto Blockchain built on the Cosmos framework, faced multiple FUD rumors. Being a stable coin, NOTE is pegged to the value of the US Dollar, which means that the token’s price cannot deflect and has to remain stable.
However, as reported by WuBlockchain, NOTE recently de-pegged from the US dollar and dropped to $0.60.
Causes of FUD
The reason for the drop in $NOTE can be linked to the drop in the $CANTO token. One of X’s users expressed his concerns on his feed, stating that the drop that has been observed is around 95% from its all-time high (ATH).
1/ Who’s ready for some @CantoPublic FUD?!!!!!1one
So the price has dropped like 95%+ from ATH so this isn’t about the $CANTO token, but could be something more interesting, the demise of the native stablecoin $NOTE. And partially because of RWA. Fun.
— Colin Platt (@colingplatt) September 2, 2024
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The Canto blockchain, built on the Cosmos framework, along with the de-pegging has also faced other issues in recent weeks such as the downtime which led to the subsequent loss of total value locked (TVL) have raised concerns about the network’s stability and security.
Amid all the drama, investors lost faith in the blockchain and created a situation of fear, uncertainty, and doubt (FUD). They have also highlighted the risks and challenges that blockchain and DeFi pose to users.
Silver lining amid de-pegging
Even though the future of NOTE and Canto remains unpredictable, the recovery of NOTE to $0.96 has brought relief to the investors but it becomes important for these projects to prioritize stability, security, and transparency to maintain user trust.
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Also Read: Ripple Price Surge 5% to $0.53; XRP Weekend Outlook Bullish?
