Upbit Removed Investment Warnings On KAVA And WAVES

Key Points:

• South Korea’s largest exchange, Upbit, has announced the lifting of investment warnings for KAVA and WAVES.
• December 2022, DAXA sounded the alarm when stablecoins USDN by WAVES and USDX by KAVA.
• This warning has not been lifted until today.

Upbit, South Korea’s biggest crypto exchange, said that South Korean exchanges have collectively lifted their investment warnings on KAVA and WAVES, and KAVA and WAVES deposit services have resumed.

KAVA and WAVES have been lifted from their designation as warning items by members of the DAXA. DAXA member companies jointly take measures such as urging investment caution/caution, designation of caution/warning items, and terminating transaction support according to the risk index for each virtual asset type to protect investors.

In the process of monitoring KAVA and related stable coin USDX, Upbit discovered that USDX was not normally linked to 1 dollar, and on November 3, 2022, DAXA jointly designated KAVA as a cautionary item.

As for WAVES and related stablecoin USDN, Upbit found that USDN was not normally linked to $1, and on December 8, 2022, DAXA jointly discussed WAVES. A cautionary item was designated.

Among the risk indicators for each virtual asset type risk disclosed by DAXA today to the standard for stable coin and stable coin-related indicators (when the ratio of stablecoin collateral of linked assets is less than 10% of the total collateral amount), the risk index for KAVA and WAVES. The reason for designating a caution item has been resolved.

However, in the future, depending on whether or not the criteria for stable coin and stable coin-related asset risk indicators are applied, KAVA and WAVES may be designated again as cautionary items, and end-of-transaction support may be taken again, according to the exchange.

The Waves ecosystem went through difficulties as USDN, previously called a “stablecoin,” has seen a significant decline. Shortly after, Sasha Ivanov, the founder of the public chain project Waves, issued a statement clarifying USDN’s future. The stablecoin has failed as a stable currency, but it is not “dead.” He also said that Waves tokens must be pulled from the centralized exchange and that the Power token airdrop would take place solely on the Waves chain.

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Harold

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