Against the backdrop of the algorithmic stablecoin Neutrino USD (USDN) losing parity with the US dollar, the Digital Asset Exchange Alliance (DAXA) issued a warning to investors about risks associated with the Waves platform.
DAXA was founded by the country’s largest exchanges — Bithumb, Coinone, Korbit, Gopax and Upbit.
“We hereby inform you that Waves (WAVES) is flagged with an investment warning by DAXA. The association may jointly take steps such as urging caution, issuing an investment warning and ceasing market support to protect users,” the statement said.
In DAXA stressed that WAVES is used as collateral for USDN. The algorithmic lost parity to the US dollar at the end of August and has yet to restore its peg.
At the time of writing the asset trades near $0.86.
Upbit will decide on a potential halt to trading in WAVES/KRW and WAVES/BTC pairs within two weeks of the warning’s publication. The company added that the period may be extended.
Over the past 24 hours WAVES has fallen 12%. As of writing the asset trades near $2.
Upbit is not the first to warn users about USDN-related risks. In July the exchange put into question the effectiveness of the mechanism backing the asset’s peg. The notice also noted USDD from the Tron ecosystem.
The latter also trades below the peg. According to CoinGecko, at the time of writing its price is $0.98.
As a reminder, in June 2022 the Tron team said it would modify USDD into an “over-collateralized stablecoin”.
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