There is enormous negative sentiment surrounding USDN. And with USDN continuously falling off its track, it’s also pulling WAVES down.
WAVES is the native token of the Waves blockchain. According to CoinMarketCap, the token is up by 0.23% or trading at $1.57 as of this writing.
There is very little improvement with its current figures.
Token up by 0.23% or trading at $1.57
USDN extremely volatile
Crypto down by 45% in the past couple of weeks
Waves blockchain confirmed the plunge of the Neutrino USD (USDN) stablecoin but insisted that the USDN, while built on top of the ecosystem, is completely detached from WAVES.
Nevertheless, as the value of USDN declined, it seems to be pulling WAVES further down as well.
Stablecoins are digital currencies whose value is anchored to that of a stable value asset, such as a fiat currency or a commodity price.
The excessive volatility of Bitcoin (BTC) and other major cryptocurrencies has made crypto investments less appropriate for everyday transactions; stablecoins try to address this problem by providing a more “stable” alternative.
WAVES Down By 99% Off Its April 2022 ATH
Blockchain founder Sasha Ivanov has urged different crypto exchanges on Wednesday to cut off the futures markets that are connected to the crypto as she insists that it’s doing more harm than good.
The crypto exchanges included Kraken, Bybit, Binance, and OKX.
Ivanov on a Twitter post said:
“They are a breeding ground for FUD and making money off short positions, profitable because of it. I kindly ask all centralized exchanges to disable Waves future markets.”
Evidently, the blockchain native currency has nosedived by more than 45% as seen in the past couple of weeks.
In fact, its numbers now are completely off-track as it’s down by as much as 99% from its ATH as seen in April 2022.
Stablecoin Acting Erratic Lately
USDN has been extremely volatile.
The token’s most recent de-peg came following South Korea’s digital asset exchange association issuing a warning.
According to Wu Blockchain, the Korean Federation of Exchanges (KFE) has issued an “investment warning” for WAVES.
The reason for this is because of the erratic price movements of the USDN stablecoin, which is intended to keep its $1 peg at all times.
WAVES was flagged as an “investment warning” by the Korea Federation of Exchanges. The reason is that the USDN stablecoin has been fluctuating rapidly. Upbit will decide whether to terminate the transaction within two weeks. https://t.co/wiB5gSfm7f
— Wu Blockchain (@WuBlockchain) December 8, 2022