Argentina has been fighting a protracted battle against growing inflation and the peso’s ongoing depreciation versus the US dollar.
The surprise departure of Martin Guzman, Argentina’s Economy Minister, caused the price of stablecoins tethered to the US dollar to rise across exchanges on Saturday.
A faltering economy already dealing with high inflation and a weakening national currency now faces further instability as a result of the minister’s shocking resignation, which was announced on Sunday via a seven-page statement posted on his Twitter account.
Other USD-pegged stablecoins, such as Binance USD (BUSD), Dollar on Chain (DOC), and others, have also seen a similar increase, according to the local cryptocurrency price tracking website.
Argentineans are investing heavily in cryptocurrencies as a way to protect themselves against rising inflation in their nation and further depreciation of the peso relative to the US dollar.
It was implemented to stop the Argentine peso from plummeting precipitously in the face of a faltering economy. The annual inflation rate in Argentina increased in May for the fourth consecutive month.
Stablecoins are becoming more popular among Argentineans as a way to store value in the US dollar.
GARI Network referred to the incident as a market event and found no indication of hacking. The value of the GARI token has decreased by 75% in just one day.
The Indian social video sharing site claimed there was no proof of hacking and that it appeared to be a common occurrence in the market. Its native token GARI has experienced a sharp drop throughout the previous day.
It was discovered after a detailed assessment that there had been no vulnerability on the tokens’ side. The announcement suggested that this might have simply been a market occurrence.
The business continued by assuring the community’s members that ALL tokens are safe inside their respective reserves.
GARI is examining the present situation and keeping open lines of communication with the exchangers. They have urged everyone in the neighbourhood to “relax,” promising to keep everyone informed of upcoming events.
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