ADA Prices Bounce Back After Cardano Djed Stablecoin Release
The long-awaited launch date of the ‘Djed’ Cardano stablecoin has been announced. ADA prices have tanked today, but there could be a revival next week.
On Jan. 25, the COTI Network announced that the Cardano stablecoin would be launched next week. It did not specify a day, but previous blog posts have indicated that it will be before the end of January.
It added that the only thing holding up the launch was the chain index syncing process, it stated. This was started a week ago and is scheduled to take 14 days, suggesting the launch date could be around Feb. 1.
COTI also announced that DJED and its balancer coin SHEN would be listed on the Bitrue exchange.
Cardano Stablecoin Incoming
COTI is a layer-1 scalable enterprise network that has been developing the Djed stablecoin.
Additionally, it explained that a snapshot mechanism and user interface have been developed to track rewards.
“As part of our effort to stake the ADA that is deposited to the Djed smart contract and generate extra rewards for $SHEN holders, we are developing a snapshot mechanism and UI that will be added to djed.xyz, where $SHEN holders will be able to track these extra rewards.”
ADA is sent to the stablecoin smart contract in return for DJED. A third token called SHEN acts as the balance when ADA prices fluctuate. Therefore, the stablecoin will be over-collateralized with ADA.
Last week, Coti explained that Djed is over-collateralized by 400% to 800%. “This means that it has 4 to 8 times more underlying value backing it, than the total sum of Djed minted,” it added.
Furthermore, Cardano’s leading DEX Minswap announced a couple of pools for the new tokens.
The launch has been highly anticipated by Cardano aficionados and ADA holders. However, ADA has taken a hit during the Wednesday morning Asian trading session.
ADA prices are currently in the process of a major pullback. The coin is down 6.4% on the day as it returns to support levels.
ADA reached an eleven-week high of $0.384 on Jan. 22 but has retreated with the rest of the crypto market today. It is currently trading at $0.354 after falling heavily over the past six hours.
The retreat could be another buying opportunity in the run-up to the Djed launch which could push ADA prices higher still.
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