South Korea has issued an “investment warning” about an altcoin project that has been rallying in the wake of the Russia-Ukraine war. Shortly after the announcement, the price went down in double digits.
DAXA marks this altcoin project as an “investment alert”
The Digital Asset Exchange Alliance (DAXA), South Korea’s cryptocurrency exchange association, has issued an “investment alert” for the WAVES token. As the reason for the decision, the exchange cited the loss of dollar stability of the stablecoin of WAVES, USDN. Following the announcement, popular South Korean cryptocurrency exchange Upbit suspended WAVES operations. The exchange announced that its users can withdraw their money within the next 30 days. Meanwhile, the WAVES price drops sharply. The token, which has moved away from the top 100 by market value, has lost more than 10% in value in the last 24 hours. It is currently about to break the $2.0 support level.
WAVES was the featured cryptocurrency of the month of October
Waves wanted to offer a functional platform for crypto payments as well as creating cryptocurrency easily. It gained strong momentum in its early days as a PoS Blockchain. The altcoin project aims to develop new tools for decentralized exchange (DEX) and wallet. Thanks to these outstanding features, it progressed up to 85th place at one point in October. At that time, its market cap reached $410 million. Prior to that, in March, it had climbed as high as $60. Waves price has been in a bearish trend since this date. With DAXA’s “investment alert”, it fell to $2.
WAVES is now taking a serious hit from popular South Korean cryptocurrency exchange Upbit. The exchange gave its users 2 weeks to trade WAVES tokens. According to the announcement dated December 8, Upbit wants to delist the WAVES token. The cause for concern was that USDN, the stablecoin of WAVES, lost its dollar stability.
South Korean exchanges worried that the next Terra will be WAVES
The algorithmic stablecoin Neutrino Dollar (USDN) has once again deviated from dollar stability. It marks the fifth time the USDN has had trouble maintaining a dollar peg this year. The Waves-backed stablecoin is trading at $0.86 at the time of writing.
Neutrino USD (USDN) is an algorithmic, crypto-collateralized stablecoin pegged to the US dollar. Users need to lock WAVES in Neutrino’s smart contracts to mint USDN. However, USDN redemptions have the opposite effect of destroying the stablecoin to unlock the WAVES supply. Following the Terra crash, which you follow on Kriptokoin.com, algorithmic stablecoins have faced visible setbacks. TerraUSD, also known as UST, was created through an algorithm to stay fixed 1-to-1 against the US dollar and trade in a sister token called LUNA. The tokens, which were then minted to maintain the UST price, caused inflation and the collapse of Terra.
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