Breaking: Waves Stablecoin USDN Depegs Massively

USDN Depegs Updates:  As the global digital asset market continues to decline after the horrible collapse of FTX, stablecoins are now feeling the heat. Data depicts that Algorithmic stablecoins like TRON’s USDD and Waves’ Neutrino USD (USDN) are de-pegging massively.

Is USDN in trouble?

Algorithmic stablecoins have been a subject of worry for the crypto industry for this whole year. Massive de-pegging of TerraUSD (UST) to literally zero led to a horrible collapse of Terra’s LUNA token.

As per the data, WAVES ecology’s stablecoin USDN has dropped by a massive 5% in the last 24 hours. USDN price went down to touch the $0.75 price level. It is trading at an average price of $0.818, at the press time.

USDN market cap has dropped by 5% to stand at $556.8 million. However, its 24 hour trading volume is up by 207% to stand at $1.3 million.

This massive drop came after the Digital Asset Exchange Association (DAXA) issued a warning about Waves. DAXA is a group of five major crypto exchanges in Korea.

Can Waves save its stablecoin?

Waves issued a statement on DAXA that led to an investigation into Waves token. It mentioned that they recognize the common due diligence requirements from Upbit and Bithumb. Their team is working closely with the team to support in inquiry.

It added that they will reach a resolution in the upcoming two weeks. While it mentioned that around 4.2% of the WAVES total supply is held in the Neutrino Smart contract. This equates to just 9.8% of the daily trading volume over all exchanges.

Waves mentioned that USDN is a separate project built on the Waves blockchain. It uses WAVES as collateral. This is the only way in which USDN can affect WAVES price.

However, the Waves price is down by 10% in the last 24 hours. It is trading at an average price of $1.83, at the press time.