Sasha Ivanov, founder of the Waves blockchain, said he plans to launch a new stablecoin after USDN further de-pegged.
“Two things: – I will launch a new stable coin – There’s gonna be a USDN situation resolution plan set in motion before,” tweeted Ivanov on Tuesday.
At press time, Waves’ algorithmic stablecoin USDN was trading 52% below its dollar peg.
it will be undepeggable
— Sasha.waves (@sasha35625) December 20, 2022
When asked if USDN could not be fixed, Ivanov said that the “important thing is to make people whole eventually.” The Waves founder did not disclose any new features of the upcoming stablecoin, except for the fact that it would not be underpinned by the same mechanics as USDN.
He said that no further announcements would be made until a USDN resolution plan has been set in motion.
USDN, an algorithmic stablecoin backed by the Waves blockchain, first showed signs of instability after losing its peg in April 2022. Despite recovering its dollar-peg a few days after, the stablecoin continued to experience a number of crashes sporadically over the next few months.
The situation worsened considerably after the Digital Asset eXchange Association (DAXA) – a body of five Korean crypto exchanges – issued a warning about Waves and USDN on Dec. 8. South Korean exchange Upbit said it would terminate transaction support for the tokens as a cautionary measure.
At the time of the announcement, USDN was trading at $0.88 but has since fallen to a low of $0.53. Meanwhile, the blockchains native token WAVES dropped 35% in the last two weeks to a low of $1.62 at the time of writing.
In a Dec. 19 blog post, Waves claimed that futures data showed the DAXA warning had “harmed Waves more than USDN ever could.” Upbit’s suspension of WAVES deposits signalled to the market that the token was risky, when nothing about it had changed, said the Waves team in a statement.
‼️ Misinformation spread by CEXs caused aggressive shorting of the $WAVES token despite no fundamental distress being present in the Waves Ecosystem.
Read on to see the clear on-chain evidence. Don’t be fooled by opportunistic traders and always DYOR! 🔍https://t.co/wVax9DgppT
— Waves 🌊 (1 ➝ 2) 🏄♂️ (@wavesprotocol) December 20, 2022