The Waves cryptocurrency (WAVES) continues to come under pressure from South Korea following a major crisis in the prices of a pegged stablecoin, the Neutrino USD (USDN).
The first signs that the stablecoin would not be healthy exploded in the market after the fall of Terra (LUNA), which had the stablecoin TerraUSD (UST) in its ecosystem.
After the fall of LUNA in May 2022, all algorithmic stablecoins are distrusted.
Since Neutrino USD is a stablecoin, it should be worth the same as $1.00 per unit. However, contrary to what the community expects, the currency is trading at US$0.84 per unit, i.e. far from the support it should maintain with the US currency.
With the problems of the stablecoin created by the WAVES team, the Korean Federation of Exchanges sent a warning to the market about the project.
Thus, Waves is considered a high risk for investors, who should avoid trading in order not to lose money. Since the fall of LUNA, which was founded in South Korea, the country’s authorities have been paying attention to the cryptocurrency market, which has left a trail of losses.
The issue caused an extreme fall in the price of Waves in the past 24 hours, which lost 12% of its value against the dollar to $2.05 per unit.
Publicly, WAVES and Neutrino USD have not commented on the new confusion in South Korea.
Broker can remove Waves for links with “stablecoin that is not stable”
In South Korea, UpBit is one of the largest cryptocurrency exchanges in the country. The trading volume on the platform in the last 24 hours, for example $935 million, places it 34th largest in the world.
And seeing the new recommendations against Waves, UpBit announced on Thursday (8) that it will not continue to support that coin.
All clients must therefore wait up to two weeks, a period during which the WAVES/BTC and WAVES/KRW pairs are analyzed by the brokerage firm. If you decide that holding support is dangerous, the trading pairs may cease to exist.
“Dear Upbit users, we hereby announce that WAVES (Waves) has been flagged with investment warning by the Digital Asset eXchange Association (DAXA) and closing of market support for investor protection.”
Finally, the Neutrino USD has been falling regularly in the market, which doesn’t give investors much confidence.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
