South Korea-based exchange Upbit has warned its users not to invest in WAVES due to its high volatility resulting from the unpegging of the USDN.
USDN is an algorithmic stablecoin backed 1:1 by WAVES. However, since USDN lost its parity under $0.8 on April 5, it failed to recover its parity, which increased the price fluctuations of WAVES.
According to CryptoSlate data, USDN it is currently trading below parity at $0.8 while WAVES it has fallen 12% in the last 24 hours.
As a result of increased WAVES price volatility, Upbit said on Dec. 8 that it was looking to suspend the WAVES/KRW and WAVES/BTC pairs. However, it will monitor the asset for the next two weeks to determine its next course of action.
Meanwhile, Upbit has warned against investing in WAVES since its volatility can result in unexpected losses for investors.
Efforts to save USDN
The USDN stablecoin has been criticized and called a “Ponzi scheme” since April, when it first depegged below $0.78.
In an attempt to restore USDN to parity, Waves founder sasha ivanova while talking to CryptoSlate confirmed that it took on bad debt of $500 million to supply liquidity.
Waves community members too supported Vires.Finance when it tried to raise funds to address the USDN liquidity crisis. Vires.Finance has been “reset”, causing many investors to deposit into the lending protocol for 0% APY, so proceeds can be funneled to save USDN.
