$1B Stablecoin FEI Hits Price Target for First Time, Month After Launch

Meanwhile, FEI’s market capitalization has plunged by almost half.

AccessTimeIconMay 4, 2021 at 2:41 p.m. UTC
Updated Sep 14, 2021 at 12:50 p.m. UTC

It took a month and a day, but the FEI stablecoin has finally hit its target price of $1.

Since its debut on April 3, FEI has mostly traded below its goal of parity with the U.S. dollar. From April 7 to April 20, it stayed below $0.80, more than 20% off its peg, according to data on CoinGecko

Things started to turn around on April 20, when the price began to rise toward the goal. Tuesday morning, FEI finally hit $1. It remains to be seen if FEI can hold this price.

FEI’s chief innovation is a concept called “protocol controlled value” (PCV), which is supposed to hold the price steady in a decentralized way that's more capital-efficient than other stablecoins. Its chief competitor in this regard is the stablecoin issued by MakerDAO, DAI. 

The FEI project was funded by a group of elite investors, such as Andreessen Horowitz (a16z), Coinbase Ventures and Framework Ventures. 

Prior to its launch, FEI recruited liquidity into its system with a launch event that promised discounted FEI and opportunities to earn its governance token, TRIBE, in exchange for ETH, the second-largest cryptocurrency. The launch attracted over $1 billion worth of ETH. 

Although FEI has finally reached its goal of a $1 price, its supply on the market has decreased significantly. According to CoinGecko, its market cap was $1.9 billion on April 29. That fell precipitously to $976 million by April 30. 

There is currently $1 billion in FEI on the market.

FEI market capitalization chart, from April 3 to May 4.
FEI market capitalization chart, from April 3 to May 4.

Since the launch, the TRIBE governance token has traded between $2.45 and $1.04. As of this writing, it is at $1.59.

The FEI team could not be immediately reached for comment. This is a developing story. CoinDesk will update it as further details emerge. 


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Read more about