Cryptocurrency exchange Gemini burnt about one-fifth of its Gemini Dollar (GUSD) stablecoin total supply on Dec. 3.

Whale Warning — a Twitter account defended to tracking large cryptocurrency transactions — reported on December. iii that 1,035,020 GUSD were burnt in a single operation. This number of tokens is equivalent to around 20% of what was the total GUSD circulating supply earlier the burn. The remaining GUSD supply is a little more than 4.ane one thousand thousand GUSD.

Gemini Dollar market cap one-day chart

Gemini Dollar market cap one-twenty-four hour period chart. Source: CoinMarketCap

Gemini Dollar's ascent and demise

The Gemini dollar has seen an overall poor performance since its launch in late September concluding year. The token received approval from the New York Section of Financial Services and the United states dollars that back information technology are "held at a banking company located in the United States and eligible for FDIC 'pass-through' deposit insurance, subject to applicable limitations."

But clearing regulatory hurdles is seemingly not enough to clinch the success of a stablecoin. CoinMarketCap historical data shows that GUSD reported $3.3 million in trading volume on December.3, down from a peak of over $249.4 million reported on February. 20, 2022. The data suggests that initial enthusiasm around the asset has cooled downward.

The burn of a notable portion of the token's total supply has not gone unnoticed by the customs, with Frank Chaparro, news manager of industry news outlet The Block, commenting on Twitter, "GUSD is i of the biggest crypto failures of 2022."

Stablecoins are causing concern amongst financial regulators worldwide. As Cointelegraph reported earlier today, Bank of Japan Governor Haruhiko Kuroda recently said that no global stablecoin should begin its operations until legal, regulatory and oversight challenges and risks are addressed.