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Why did WAVES founder reportedly buy 5 million ‘cheap’ ex-stablecoin USDN

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If you’re into crypto news that comes from beyond the top 20 coins, you might be familiar with the drama surrounding Waves [WAVES] and Neutrino USD [USDN]. In short, this involved the stablecoin USDN losing that status as it oozed value, while Waves founder Sasha Ivanov blamed Alameda Research for leading a FUD campaign against the flailing WAVES.

FTX CEO Sam Bankman-Fried rubbished these claims, but now that the waters have settled (a little), let’s take a look at what’s going on in the WAVES community.

Waving goodbye to the past

On 6 April, Ivanov claimed that he had bought five million USDN. The ex-stablecoin, which fell down to $0.78 at one point, was trading at $0.9131 close to press time.

What’s more, the Waves founder indicated that he planned to buy more USDN at a discount and perhaps turn Waves into a DAO. Strong ideas do have the potential to attract investors, but USDN was still trading far below its original price since being de-linked from its peg early in April.

Source: Santiment

However, DAOs are a glamorous word in the industry – take a look at the TRON project, now officially called TRON DAO on Twitter.

Making a splash. . .or a bellyflop

What about WAVES, in that case? Even though the market was turning red, the #44 biggest crypto by market cap was trading at $29.27, after falling by 13.50% in the last 24 hours and diving by 44.28% in the last week.

However, trading volumes were still spiking, suggesting that many investors might be looking at this fall as a “buy the dip” opportunity – in case WAVES sees another vertical rally again.

Source: Santiment

Is Vires veering or stabilizing?

Another puzzle piece: Vires Finance, the liquidity protocol for Waves – where Ivanov claimed he discovered evidence of Alameda Research’s attempt to short WAVES – put out a proposal explaining how the economics of the ecosystem might be changing to stop price manipulation in the future. It stated,

“In order to prevent price manipulation and protect the ecosystem I propose to temporary reduce the liquidation threshold for Waves and USDN borrowing to 0.1%. Also I propose to limit the maximum borrow APR to be 40%.”

When users complained they did not understand the impact, Waves developer advocate and engineer Inal Kardanov said an explanation would come – if his tweet got enough love.

As of press time, 28.9k were in favor of the motion, while 24.7k were against it. What’s more, Waves and USDN were still trending terms on Santiment.


Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.
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