Figure's Heloc token, linked to $13 billion in blockchain-based home equity loans, experienced an 81% flash crash on October 24, plummeting to $0.19 from its typical $1 value. This sudden drop erased over $10 billion in market value before the token partially recovered. The cause of the crash remains unknown, and Figure has not commented on the incident.
The event has sparked concerns about the stability of blockchain-based loans backed by real-world assets, with critics highlighting issues such as low liquidity and a lack of transparency in Figure's onchain loan data. Figure, which recently raised $800 million in a U.S. IPO and holds an $8.5 billion market cap, faces scrutiny over its platform's resilience.
Figure's Heloc Token Suffers 81% Flash Crash, Raising Concerns
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