A depeg event occurs when a stablecoin loses its value anchor, leading to significant price drops and undermining its role as a reliable medium of exchange. Causes include token mechanism weaknesses, market shifts, and regulatory uncertainties. Depegs can erode trust in the stablecoin and impact the broader crypto ecosystem. Preventive measures include transparency, regulatory compliance, and robust governance. Ultimately, careful management can help issuers maintain trust and stability in their assets.