RWA REALITY CHECK: Figure HELOC Token Plunges 81% in Flash Crash!
The Real World Asset ($RWA) narrative just got a massive wake-up call. The Figure Heloc token (FIGR_HELOC)—representing $13 billion in home equity loans—experienced a stunning 81% flash crash last week, briefly plummeting from its stable $1 peg to $0.19.
The core issue? Extremely low on-chain liquidity. Market data shows tiny transaction volumes can cause catastrophic price swings when the asset is tokenized but not truly liquid on-chain. This is a critical stress test for all institutional DeFi: when a multi-billion dollar asset can be destabilized by minimal trading activity, we have to question the depth and resilience of the tokenization model.
Tokenization promises efficiency, but low-liquidity tokens tied to massive off-chain value are ticking time bombs of volatility. This incident reinforces that in crypto, market depth is non-negotiable, even for assets backed by real property.
The question is: How do we ensure robust, institutional-grade liquidity for RWAs? Does this require a new exchange model, or deeper integrations with major pools?
