South Korea-based exchange Upbit warns users not to invest in WAVES due to high volatility due to USDN de-pegging.
USDN is an algorithmic stablecoin supported 1:1 by WAVES.But since USDN lost its peg Less than $0.8 Unable to regain the peg on April 5th, WAVES experienced significant price volatility.
USDN is currently trading below the $0.8 peg, while WAVES is down about 12% over the past 24 hours, according to CryptoSlate data.
Upbit said on Dec. 8 that it was considering suspending the WAVES/KRW and WAVES/BTC pairs as a result of WAVES’ increased price volatility. However, we will monitor the property over the next two weeks and determine our next actions.
Meanwhile, Upbit has issued a warning against investing in WAVES, whose volatility may lead to unexpected losses for investors.
Efforts to save USDN
The USDN stablecoin has been criticized and dubbed a “Ponzi scheme” since it first dipped below $0.78 in April.
In an attempt to peg the USDN back, Waves founder Sasha Ivanov confirmed while speaking to CryptoSlate that it had taken on $500 million in bad debt to provide liquidity.
Members of the Waves community also assisted Vires.Finance in its attempt to raise funds to address the USDN liquidity crisis. Vires.Finance was “reset” and many investors deposited into his 0% APY lending protocol, allowing the proceeds to go toward his USDN savings.
