OKX CEO: USDe is closer to a tokenized hedge fund than a stablecoin

OKX CEO Xu Mingxing stated on X that USDe should be viewed as a tokenized hedge fund rather than a one-to-one pegged stablecoin. He argued that it is inappropriate to define USDe as a stablecoin or describe its recent price fluctuations as a depeg, as tokenized hedge funds are not designed to be pegged to the U.S. dollar. While hedge funds often use low-risk strategies like delta-neutral trading, Xu noted they still face risks such as auto-deleveraging (ADL), exchange vulnerabilities, and custody security issues. He warned that any platform including USDe in its collateral system must implement strong risk mitigation measures, emphasizing that treating it as a stablecoin could introduce systemic risk to the entire crypto industry.