Wave Labs reveals DAXA warning caused significant damage to WAVES token
Waves Labs Dec. 8 DAXA Alert Did More Harm to WAVES Token Than USDN Stablecoin Unpegging “Have Ever Been Possible,” Futures Data Reveals I am reporting that
WAVES open interest (OI) on various centralized exchanges (CEX) increased dramatically after Upbit announced on December 8 that it was suspending WAVES token deposits. Waves Labs.
South Korean exchange Upbit suspended WAVES deposits on December 8 after receiving a warning from digital asset group DAXA that the token was fundamentally unstable. The Waves team quickly disputed these claims, but the damage has already been done as some exchanges still restrict WAVES, causing liquidity issues and market uncertainty. This caused opportunistic traders to aggressively short WAVES tokens, resulting in increased volatility and destabilizing markets.
On December 8, WAVES derivatives OI increased 176% from its previous stable historical baseline of $22.6 million. Within eight hours OI rose to his $62.5 million. This is a level he hasn’t seen since early August. This increase in his OI is almost entirely due to traders shorting his WAVES. This is evidenced by the funding rate, which measures the distribution of long and short positions in futures contracts.
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