DEGO Finance’s Price Crash: Is USD1 the New Stablecoin or Just Another Fiasco?

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Well, well, well, look who’s crashing and burning—DEGO Finance (DEGO) just took a nosedive, and it’s all thanks to some good old-fashioned community FUD (fear, uncertainty, and doubt) following an announcement on June 4. 🥴

And, surprise surprise, it involves USD1, the stablecoin from the Trump family’s World Liberty Financial. Yes, you heard that right. Buckle up. 🙄

DEGO Price Plummets 60%: What On Earth Happened?

DEGO’s price didn’t just dip; it plunged. We’re talking a 60% drop after the announcement that it would start supporting USD1—a stablecoin by World Liberty Financial (WLFI)—as part of a new liquidity initiative on the BNB Chain. The crypto world was left scratching its head. 🤔

“We’re officially purchasing $USD1 World Liberty Financial as a liquidity reserve and supporting the liquidity program launched by World Liberty Financial (WLFI) on BNB Chain. This move reflects our commitment to building a stronger DeFi ecosystem—and exploring deeper collaborations with USD1 as we assemble the decentralized LEGO of Web3,” read the official announcement. Well, that sounds…ambitious? 🤷‍♀️

The team framed it as some sort of genius strategy to strengthen DeFi infrastructure. But, shockingly, the market didn’t exactly throw a party for this announcement. 🙄

DEGO’s price took a nosedive, and the Relative Strength Index (RSI), a fancy momentum indicator, plunged straight into the “oversold” zone. Panic mode engaged. 😱

Now, some members of the DEGO community tried to make sense of it all. “Hey, at least now we can trade DEGO with USD1, right? Sounds stable,” one user said. But, wait for it—“by the way, this liquidity might just be creating a whole lot of FUD.” 🙃

“Team adding liquidity of DEGO on USD1 allows users to trade DEGO with a stablecoin, improving market access and price stability… by chance this liquidity creates FUD,” one brave soul pointed out. How comforting. 😬

In crypto, adding liquidity usually means pairing DEGO with USD1 on a decentralized exchange (DEX) to make trading smoother. It’s supposed to stabilize the price, but when you throw in a dash of fear, confusion, and questionable liquidity, things get… sticky. 😅

Here’s where things get interesting. Over half of USD1’s liquidity on PancakeSwap DEX is controlled by just three wallets. Um, what? That’s like saying “Hey, we’ve got stability, but don’t look too closely at the people behind it.” 🙄

BeInCrypto reported that those three wallets hold a whopping 93% of USD1’s market cap. So yeah, let’s just say the market is *not* buying the whole “decentralized” story. Trust issues? You bet. 🧐

If USD1’s liquidity is just a puppet show controlled by a few big players, it’s no wonder that DEGO investors are getting a bit freaked out. Who wouldn’t be? 🤯

The market clearly sees USD1 as a bit of a risky bet, and pairing it with DEGO? Well, that’s just setting the stage for more FUD. 😬

Dego Finance Tries to Calm the Masses: “It’s Not a Scam!”

As panic spread faster than a viral TikTok dance, some people started whispering that DEGO might be a scam. Great. The trust level was plummeting even further. 💀

But don’t worry, DEGO Finance released an official statement on June 5 to assure everyone that it wasn’t all doom and gloom. Cue the deep sigh of relief. 🙄

“We’re aware of the recent price volatility following the announcement on June 4th, which has understandably caused concern across the community. First and foremost, we want to emphasize: there have been no changes to DEGO’s fundamentals, tokenomics, or long-term vision,” Dego Finance explained. Well, that’s… reassuring, I guess. 🙄

The team blamed the crash on short-term market sentiment, as if it was just a bad day at the office. 😬

“The sell-off appears to be driven by short-term market reactions, and we are actively reviewing both on-chain data and external factors to ensure transparency,” they assured. Sure, sure. 🤥

And in case you were wondering, DEGO’s long-term mission is still “to build a resilient, decentralized incubator driving innovation in DeFi, AI, and Meme culture.” Big dreams. But first, can we get through today without crashing again? 😆

They also promised more updates soon, so don’t go anywhere—there’s more drama to unfold. 📉

But hey, this isn’t DEGO’s first rodeo. Back in 2021, it fell 51% in three minutes after being listed on Binance Launchpool. The cause? Still unclear. But this time, the reason is crystal clear—panic and uncertainty. 🤷‍♀️

In 2021, the token of $DEGO Finance, which was launched on @binance Launchpool, suddenly plummeted within just a few minutes.

The token’s price dropped by 52% in just 3 minutes, but the exact reason behind this sharp decline remains unknown.#Binance #DEGO

— Ali (@Alijontreyder) June 5, 2025

And there we have it. DEGO is now trading at $1.26, and if you’re wondering whether it’s safe to buy, well, the answer is as clear as mud. 🙃

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2025-06-05 12:48