Cosmos (ATOM): Fatal blow for the euro and its stablecoin EEUR

EEUR is over! – The descent into hell of the stablecoin TerraUSD (UST) in May 2022 demonstrated how stablecoin pegs on their copied asset can be precarious. Especially for stablecoins algorithmic. This time it’s the euro-pegged stablecoin called EURon the blockchain network Cosmos (ATOM), which has just been stopped shortbefore a new tragedy occurs.

Crypto winter got the better of the EEUR stablecoin on Cosmos

The market of Bitcoin (BTC) and cryptocurrencies has yet to recover from its annus horribilis what will have been 2022. Digital asset prices are still immersed in this long crypto winterand the latter has just made a new victim.

The project team e-Moneywhich operates in the blockchain ecosystem Cosmoshas announcement what threw in the towel for its euro stablecoin, theEUR. Thus, e-Money explains stop broadcasting of its EURR from this Monday, January 9, the same day of its announcement.

“Important Announcement: Withdrawal of the EEUR stablecoin.
e-Money has decided to stop issuing its euro-pegged stablecoin.
All of these stablecoins remain fully tradable, and can be redeemed. Read our Medium post and select one of the redemption options listed. »

e-Money ends the adventure of its euro stablecoin, EEUR.
Twitter account @emoney_com

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Exchanges in cryptos still possible, even in euros for whales

As mentioned by the tweet above, this withdrawal from the EEUR is fortunately happening in good order. What is all the more reassuring, when the very unpleasant 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 single European currency will still have the two redemption options following (until March 6, 2023last deadline!):

  • for the “small amounts”e-Money recommends using the decentralized exchange (DEX) Osmosis. EEUR can be exchanged there for other cryptocurrencies likeATOM (native token of Cosmos) or a stablecoin of the dollar like theUSDCfor example ;
  • and for the “larger amounts” (equivalent to more than 100,000 euros), EEUR stablecoins can be directly exchanged for euros, via e-Money’s redemption services – which will however require going through identity verification (KYC) first obligatory.

So these will be the “current market conditions” cryptos, particularly difficult, which will have overcome the EEUR. Indeed, e-Money judges “cautious and responsible” the shutdown of its stablecoin of the euro, while there is still time without drama. Considering the number of bankruptcies, as quick as they are painfulthat the cryptosphere will have experienced last year, we can effectively qualify this present orderly withdrawal as being wise. Very wise even.

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Cosmos (ATOM): Fatal blow for the euro and its stablecoin EEUR

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