e-Money Stops Issuing Its Euro-backed Stablecoin After 2 Years

Key Points:

• e-Money, a cosmos-based electronic payment system, has halted issuing its EEUR stablecoin, citing market conditions.
• Up to March 6, the platform will accept EEUR stablecoin redemptions.
• Customers with less than 100,000 EEUR in their accounts can close out their positions by exchanging their tokens in Osmosis, the biggest decentralized exchange on Cosmos, directly in the stablecoin market.

Because of the bear market, e-Money has stopped issuing its EEUR stablecoin, which is backed by euros.

According to a Medium post, the Cosmos ecosystem stablecoin project e-Money will stop issuing its EURR stablecoin on March 6. The decision to end the stablecoin project was challenging, e-Money wrote in its explanation of choice:

“e-Money had hoped to continue the success of its EEUR stablecoin in 2022, but the crypto industry faced many challenges in 2022, with both centralized and decentralized entities experiencing difficulties. While e-Money was not directly affected, the stablecoin business relies heavily on integration with traditional finance, and financial institutions’ interest in cryptocurrency has waned following the events of 2022. As a result, the tumultuous events of 2022 have made it challenging for e-Money to integrate with traditional finance.”

Up to March 6, the platform will accept EEUR stablecoin redemptions. Customers with less than 100,000 EEUR in their accounts can close out their positions by exchanging their tokens in Osmosis, the biggest decentralized exchange on Cosmos, directly in the stablecoin market.

They can trade their tokens for USDC or native assets of Cosmos, like ATOM and OSMO. Users were encouraged by e-Money to close down their positions gradually to lessen market volatility and price slippage.

Important Announcement: EEUR Stablecoin Unwind

e-Money A/S has decided to cease issuance of its EUR backed stablecoin

All stablecoins remain fully backed and can be redeemed. Read our Medium post & select one of the listed redeem options https://t.co/1yneUFrD7U

— e-Money (@emoney_com) January 9, 2023

Customers can redeem amounts more than 100,000 EEUR immediately for euros, according to the notice. The process will take up to five business days for these users to pass customer identification checks.

Even if the EEUR stablecoin was terminated, the platform insisted that its blockchain project would still be active. Within the first quarter of the year, the project intends to improve its chain and incorporate the newest Cosmos features.

Smaller batch sales are encouraged by the project to lessen market effects and slippage. Markets will continue to trade close to the reference price thanks to market-making efforts conducted by e-Money.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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