WAVES, which gained more than 450% in March, has already lost 35% of its value following rumors
The WAVES-powered USDN stablecoin broke the peg, causing the stablecoin’s price to fall to $0.85. This usually only happens when there is an unpeg or some sort of technical error in the code of the stablecoin, e.g. WuBlockchain.
Drama behind Waves
Following the crash of the stablecoin, the cryptocurrency community on Twitter was flooded with articles that accused Waves, the team behind it and the CEO of the project of running a Ponzi scheme.
Apparently, the origin of the de-peg might not be related to the rumors of the Ponzi scheme. Previously, the de-anchoring could have happened due to a proposal by Vires Finance to reduce USDN lending to 0.1% and increase the borrowing APR limit to 40%.
In case of a successful vote, borrowers would need to repay their loans with WAVES, USDN and EURN. Following the release of the vote, users have most likely started actively closing their positions and exchanging USDN to other assets, which caused a tremendous amount of selling pressure.
Ivanov accuses Bankman-Fried
After Waves lost 15% of its value in the past 24 hours, project founder Sasha Ivanov accused FTX’s CEO of shorting the asset. According to Ivanov, Alameda-linked accounts asked the project to borrow one million Waves tokens to sell them short in the market.
Besides asking for one million tokens, $1.5 million was requested for “native token integration.” The CEO of the FTX exchange quickly debunked the rumors and called Ivanov’s message a “conspiracy theory.”
