Waves USDN Has Dropped To $0.789. Are Stablecoins Losing Value?
USDN, the WAVES ecological stablecoin, has dropped dramatically in the last 24 hours, and the current price is barely $0.789.
Waves was previously included on the South Korean exchange’s warning list due to USDN’s unpegged status and volatility.
The Korean Digital Asset Exchange Association (DAXA) exchanges have been tracking the price trend of the USDN stablecoin, and the value of the linked Waves varies swiftly in the unusual event that the customary $1 unpegged scenario is not resolved, which might result in unanticipated losses for investors.
Upbit has suspended trading in WAVES. Users will be able to withdraw their monies during the following 30 days.
Since then, however, the stablecoin’s value has continued to drop by more than 6%, and there is currently no incentive for it to return to its peg.
Waves has released a statement on its official website regarding the DAXA investigation of the tokens. Specifically, Upbit and Bithumb believe that the price of the WAVES token may become volatile due to USDN losing its peg.
But the platform claims USDN is an independent project built on the blockchain that uses WAVES as collateral, it is not intrinsically linked to the WAVES token.
Doubts about the liquidity and backing of stablecoins, especially algorithmic stablecoins, are growing. USDD, the stablecoin of the Tron ecosystem, is also losing its peg and is currently trading at $0.98.
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