Whale Buys Discounted USDX Amid Peg Decline

On November 7, 2025, USDX dropped to $0.3887, prompting a whale to purchase 933,241 USDX with 800,000 USDT, aiming for arbitrage gains during the depeg.

The USDX drop highlights potential vulnerabilities in stablecoin mechanisms, impacting investor confidence and revealing risks within arbitrage strategies amid unconfirmed redemption delays.

Whale Investment: USDX Peg Challenge and Market Response

This sharp decline prompted an unidentified large investor to capitalize on the disparity.

A whale address, 0xe454, acquired 933,241 USDX with 800,000 USDT at an average price of $0.8572, arbitraging the depeg. This trade follows an earlier purchase of 1.4 million USDX. All tokens have been submitted for redemption, awaiting completion.

“I bought 933,241 USDX for 800,000 USDT, aiming to exploit the depeg.” — Unnamed Whale Trader, Arbitrageur

Historical Insights: Stablecoin Challenges and Market Dynamics

Did you know? The Terra UST collapse in 2022 serves as a cautionary tale of stablecoin volatility, underscoring the significance of ensuring peg stability.

Stables Labs (USDX) currently trades at $0.68 after its severe peg deviation, influenced by a 24-hour trading volume increase of 161.54%. According to CoinMarketCap, USDX’s 24-hour price has slid by 31.92%, with no reported market cap, illustrating its severe liquidity challenges.

Analyses suggest that coordinated institutional interventions could restore peg balance, though regulatory scrutiny may intensify. Exploring stablecoins as a bridge between fiat and crypto markets remains critical for sustaining token utility and investor confidence.