Canto, a blockchain built on the Cosmos network, recently faced significant challenges with its native stablecoin, NOTE. The stablecoin sharply dropped below $0.6 today but has since recovered to around $0.96.
Canto, a blockchain built on the Cosmos network, encountered challenges with its native stablecoin, NOTE. The stablecoin briefly dropped below $0.6 on Friday but has since recovered to around $0.96.
These incidents follow a recent period of downtime on the Canto network, which led to a substantial loss of Total Value Locked (TVL).
According to reports, the problems began when Canto faced technical difficulties, leading to a prolonged downtime. After the network was restarted, a significant amount of TVL was lost. This loss of TVL weakened the overall ecosystem of Canto.
One of the major issues was the loss of stablecoin assets on the cross-chain bridge. When assets were lost on Canto’s cross-chain bridge, it led to a loss of confidence in NOTE, causing its value to fall sharply.
However, as of Friday evening, NOTE has partially recovered from the sharp drop and is now trading at around $0.96. While this is closer to its expected value, the incident has raised concerns among crypto investors.
The sudden drop in value and the problems with the blockchain’s operation highlight the risks associated with new and emerging blockchain projects.
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