Depeg
Also known as de-peg depegging lost its peg
A depeg occurs when an asset designed to track a fixed value, such as a dollar stablecoin, trades significantly away from that target. It can be caused by doubts about reserves, problems with redemptions, a failure in the stabilising mechanism or a sudden rush of selling. Some depegs are brief and recover; others become permanent if the backing proves insufficient. Holders often watch redemption terms and reserve disclosures closely.