- STBL token launched by Tether co-founder Reeve Collins has lost 80% of its value since its October debut.
- Five Tornado Cash-funded wallets extracted approximately $17 million from early trades, significantly impacting the token’s market cap.
- The current market cap of STBL is about $50 million, far below its initial $300 million valuation.
- STBL claims to be a governance token for USST, a USD-pegged stablecoin, but has under $1.6 million in collateral backing.
- Tether itself holds over $162 billion in collateral, highlighting the stark difference in stability between the two projects.
STBL, a new cryptocurrency token launched by Tether co-founder Reeve Collins a month ago, has experienced a dramatic 80% drop in price. The token, once valued around $300 million, now has a market capitalization close to $50 million. Significant selling activity from five wallets, each funded through Tornado Cash on March 13, 2024, reportedly profited about $17 million combined from early trades.
According to CoinGecko, STBL’s market cap reflects this steep decline. The token’s trading activity notably appears concentrated around its initial high price levels in early October. Collins describes STBL as a governance token for USST, positioning it as a “next evolution” in USD-pegged stablecoins. However, available collateral for STBL totals less than $1.6 million, a minor amount compared to established stablecoins.
The token is not currently listed on CoinMarketCap or CoinGecko’s major platforms. In contrast, the USD-pegged stablecoin Tether (USDT) maintains collateral exceeding $162 billion, indicating significantly higher backing and market trust.
Reeve Collins previously served as CEO of Tether and was one of its early employees before its current CEO, Paolo Ardoino, took over. Unlike some of Tether’s leading figures, Collins is not recognized among major billionaire wealth rankings. For comparison, Tether Chairman Giancarlo Devasini is estimated to have a net worth ranging from $13 billion to possibly $224 billion according to Bloomberg. CEO Ardoino and former CEO Jean-Louis van der Velde have estimated net worths up to $95 billion, based on valuations tied to Tether’s $15 billion open fundraising rounds.
Despite the rapid devaluation, STBL attempts to reassure users. On its official X account, the project stated that “cashing out meaninglessly by dumping tokens neither aligns with our long term goals nor does it justify the value that we are creating.” However, the token dropped by a further one-third even after this statement.
The launch has also been marked by a failure to prevent early insiders from coordinating large sales. The five wallets funded via Tornado Cash were able to extract $17 million from the token’s initial distribution. This major sell-off significantly eroded the value left for other holders.
For more information on the stablecoin project, see the official overview. Further updates and discussions about STBL can be found on social media platforms such as X.
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