Assets · 30 / 86
How pegs fail
A peg fails when people ask for the real asset and the issuer or the design cannot produce it fast enough. The price on a market then drops below the promise.
A run
Everyone tries to exit. The reserves, if they exist, are slow, illiquid, or already lent out. The market price is what you can get now, not the number in the white paper.
No redemption
Some tokens have no window where you can hand them back for the backing. You are stuck selling to whoever will buy. That is not a dollar. It is a market.
A depeg can be brief or final. Either way, a plan that needed the peg to hold has already broken.
Check yourself
If the website still says one dollar, is that the price you can sell at?
Not during a break. The market price is the one you can get.
After this you can ask whether you can redeem, and what you would actually receive today.