Bitfinex-Backed Stable Sees Hectic Mainnet Launch as Token Price Drops

StableChain, a Layer 1 network for stablecoin-based payments, backed by Bitfinex, has stumbled out of the gate as users reported they couldn’t withdraw funds or claim their STABLE tokens.

Stable debuted its StableChain mainnet and native token STABLE yesterday, Dec. 8. But pre-launch campaign depositors say that though their deposits were converted into a token, there was no way to redeem it back into Tether’s USDT. The lack of withdrawals has left many unsure when they’ll regain access to their money, with some calling the launch “an absolute disaster.”

Some also complained that the network was launched in a way that made it hard to claim STABLE tokens or move funds, because there was no straightforward method to pay transaction fees on the chain.

“Mainnet went live and people claimed their $STABLE, with price tanking instantly. But wait, nobody at Stable thought it would be smart to give people gas for their mainnet, so you had to figure out how to bridge gUSDT to then bridge off your $STABLE to sell it,” wrote a user under the alias BagCalls in an X post.

A spokesperson for Stable told The Defiant that the firm published an airdrop guide on its blog yesterday, and has developed its own tools for swapping and converting assets, accessible directly from its site "to create as seamless of an experience as possible for STABLE token holders."

The spokesperson also clarified in comments today that "to date, nearly half of the STABLE allocation has been withdrawn, suggesting that this isn’t a broader issue for most participants."

Fees on Stable

As of press time, some note that the only workaround involves using cross-chain bridges Stargate, Jumper or Relay to send a small amount of gUSDT, which Stable describes as a “native variant of USDT,” to the network. Meanwhile, Stable's official site links to Stargate for bridging assets.

As Stable explains in its documentation, USDT0 — Tether’s cross-chain version of USDT — serves as the core asset on the Stable network, while gUSDT is used as the native gas token on Stable and is primarily intended for paying transaction fees. According to Stable’s documentation, for USDT0 transfers, users don’t pay any gas fees, but for other smart contract operations, users “pay gas fees in USDT0 tokens, which are automatically converted to gUSDT.”

The extra steps added to the frustration and came as the STABLE token price slid 25% since reaching as high as $0.235 yesterday, trading near $0.018 at press time, per CoinGecko data. Despite the turmoil, the Stable team has yet to make any public statements on the launch and airdrop issues.

Pre-Deposit Woes

Stable’s launch was already controversial before the mainnet and token went live, with people raising eyebrows over how the first pre-launch campaign deposits were handled. In October, Stable opened an $825 million deposit vault for early users. But as The Defiant reported, it quickly became clear that most of it was filled even before the public could access it, with about $500 million coming from wallets tied to the Stable team.

On-chain sleuths reported that most large deposits were funded through multi-signature wallets, suggesting the team or its partners had acted on advanced knowledge of the launch.

A second campaign last month also had issues, and deposits were paused after technical difficulties.

Stable is backed by Bitfinex, a crypto exchange and the sister company of stablecoin giant Tether. Bitfinex co-led a $28 million seed funding round in July alongside Hack VC, with participation from other major crypto VC firms, as well as Tether's CEO Paolo Ardoino.

Disclaimer: This article has been updated to include comments from an official spokesperson for Stable.