GLUSD was originally designed to be the dollar pegged token within the Genesis League Sports project. At the time of writing, the token is trading far away from the theoretical peg and there's not been much talk about it.
Much like DEC, GLUSD was meant to stick with a theoretical peg with the dollar. DEC was expected to trade at 1000/$1 while GLUSD was originally meant to be 1:1 with the dollar and both tokens were designed to be priced according to the whims of the market.
GLUSD seems to be taking the same route with DEC and it is trading somewhat similar to DEC in the early days.
These days, DEC maintains a price range that hovers around the theoretical peg but it wasn't always the case. In the not so distant past, questions were asked about DEC as well and the Splinterlands community responded with a solution.
Considering that GLUSD is similar to DEC and launched by the same team behind the latter, I hoped that the kinks would have been ironed out. However, there's only so much the originating company can do about the price of an asset that's determined by the market.
In any case, looking at the state of the market as it is, the obvious reason behind the decline in the price of GLUSD can be traced to the lack of demand for GLS products.
At the time of writing, Genesis League Goals is the only functioning product in the GLS ecosystem that promises so much. However, it is safe to say that things haven't exactly kicked off in the game, with trading volume barely scratching $1k on most days.
The issue is that Genesis League Goals, while made with the best intentions, is simply not a football game. It has some elements of football but it isn't actually football.
I was among the early adopters to note the problems with the game and many others also echoed my sentiments. It was quite underwhelming and a bit too "cartoony", something that a boisterous football fan like myself would not connect with.
So, there's an underlying lack of demand for GLG assets which in turn leads to relatively lower trading volume. This, in turn means that the value of associated assets won't exactly be making waves in the market.
Keep in mind that buying GLG cards requires GLUSD and so, if people aren't buying cards, it is safe to say that demand for GLUSD drops. This then leads to GLUSD trading well below it's peg.
It might be an opportunity or a bear trap, that all depends on forces beyond our control. If demand for GLG assets starts going up, then buying GLUSD is the way to go because it will definitely climb up to the peg but if that doesn't happen, then you might end up bag holding for a long time.
