The post Concerns Mount Around New Stablecoin appeared on BitcoinEthereumNews.com.

Altcoins The so-called “synthetic dollar” USDf, issued by Falcon Finance and backed by DWF Labs, has fallen below its $1 target just months after launch, triggering investor anxiety across the crypto sector. Early Monday, the token briefly dipped to $0.98, casting doubt on the stability of its $540 million market cap. Although marketed as overcollateralized with diversified crypto assets, analysts and DeFi risk monitors are raising red flags. Only a fraction of USDf’s reserves are on-chain—around $25 million—while the vast majority, roughly $610 million, is held off-chain in unspecified assets. According to Falcon’s own data, just 15% of reserves are stablecoins, while 85% are vaguely listed as “other.” The lack of transparency has prompted backlash from platforms like LlamaRisk, which recently warned that including USDf in lending systems could pose systemic risks. Concerns intensified following a $9 million hack involving one such platform, Resupply. While DWF’s Andrei Grachev insists the token is mostly backed by BTC and stablecoins and blames competing projects for spreading fear, independent audits tell a different story. Valuations rely on basic pricing data without accounting for liquidity or actual market impact, and no verification has been done on asset custody. Critics also speculate that USDf could be a tool for offloading low-liquidity tokens at inflated valuations—a tactic reminiscent of past collapses, including last year’s CRV debacle. Falcon Finance has promised more clarity soon, but until then, confidence in USDf appears increasingly shaky. Author Kosta Gushterov Reporter at Coindoo Kosta gehört seit 2021 zum Team und hat seine Position mit seinem Wissensdurst, seinem unglaublichen Engagement und seiner „detektivischen“ Denkweise gefestigt. Er deckt nicht nur eine breite Palette von Trendthemen ab, sondern erstellt auch Rezensionen, PR-Artikel und Bildungsinhalte. Seine Arbeit wurde auch von anderen Nachrichtenagenturen referenziert.
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Filed under: News - @ July 9, 2025 8:30 am