2026-01-18 15:31:04

Recently spent time researching the FRAX project and discovered some interesting details. Many people treat it as a governance token for speculation, but in reality, the core goal of this project is not that—what they truly want to do is create a stablecoin, aiming for a 1:1 peg to the US dollar.

To be honest, this direction is a bit overly ambitious. It’s important to note that the stablecoin sector is already a red ocean, with the competitive landscape essentially settled from USDC to USDT and others. FRAX’s current state is somewhat awkward, still in transition, and has not fully switched to operating as a stablecoin.

But here’s a key point—once the project officially announces the switch, market reactions could be very direct. By then, FRAX’s price expectations will inevitably be recalibrated, gradually returning to the 1:1 peg to the dollar. This is not a sudden event, but an inevitable result dictated by the mechanism.

So if you are still treating it as a regular governance token for your positions, you might need to reassess your logic.

FRAX48.55%

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MevHunter

· 6h ago

Basically, it's a matter of time. Once the switch is announced, a dump will happen immediately. FRAX wants to compete with stablecoins? Dream on, USDT is already making steady profits. I don't understand what people are thinking by still trying to bottom fish... The price is really about to re-anchor, and by then, it'll be too late to cry. The track is already saturated, yet some still insist on forcing their way in, which is a bit ridiculous. The mechanism is right there; it can't be run away from. It's better to recognize that early.

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AllTalkLongTrader

· 6h ago

Ha, this analysis is a bit too absolute. Is the stablecoin track really that solid? Wait, does returning to 1:1 mean it will go to zero? I need to think about this logic... I think FRAX's situation isn't that simple, and it’s not worth being so pessimistic. Bro, are you trying to discourage holding positions? Haha You're right, I haven't really understood the project's true direction yet. I need to re-evaluate.

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NFTArtisanHQ

· 6h ago

ngl the "paradigm shift to stablecoin" narrative feels like watching benjamin's thesis on mechanical reproduction play out in real-time... except the token becomes its own copy, which is kind of hilarious from a curatorial standpoint

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HashRateHermit

· 6h ago

Uh... Does anyone still not understand what's going on with FRAX? Did everyone get cut after entering? --- In the red ocean of stablecoins, it’s indeed a bit naive for FRAX to insist on breaking in. --- Wait, wait, wait, switching to a real stablecoin and dropping to $1? Should I sell my position now? --- Basically, everyone is betting that this transitional period will produce some tricks, but in the end, it still comes back to 1:1, which is a bit ridiculous. --- Governance token allocation... I’ve definitely fallen into this trap before. I should have seen clearly what it was trying to do. --- The inevitable result dictated by the mechanism—doesn’t it sound a lot like a reason to cut the leeks? --- Still trying to come up with new ideas in the red ocean? The project team’s really got a big brain.

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