What does it mean when a stablecoin depegs?
A depeg is when a stablecoin's price moves away from the value it is meant to hold.
Small moves of a fraction of a percent are normal. A large one can mean people doubt its reserves, and can lead to a rush to sell. Stablecoins have collapsed completely in the past, so holding one is not the same as holding cash in a bank.
General information only, not financial advice. Investing can lose you money.