WAVES of drama & conspiracy: What happens when a stablecoin stops being stable
Stablecoins are meant to be.. .well, stable, but one such asset was bleeding out its value at the time of writing and may never be the same again. However, that’s only the first act. Behind this ex-stablecoin is a floundering altcoin project, some serious accusations leveled against a crypto billionaire, and claims of “b*llshit.”
Here’s what you need to know to untangle the mess.
Just a while back, Neutrino USD [USDN] was a lesser known stablecoin on Coin Market Cap. However, at press time, all eyes were on USDN as it slipped down to $0.8614, and plunged by 10.77% in the past 24 hours. In the last week, the asset has dropped by 13.76%.
Not your everyday crypto event, to say the least.
Source: CoinMarketCap
At press time, around 1,549 USDN holders had made about 47,631 transfers, according to Etherscan.
What led to this carnage? The story is still developing, but one cause could be the USDN currency being de-linked from its peg. This, again, could be the result of a proposal on Vires Finance, a decentralized liquidity protocol for Waves.
More evidence is needed to confirm what really happened behind the scenes. However, Vires Finance leads us into the second act of this drama.
It might not be news to you that WAVES enjoyed an impressive upriver swim, swelling by more than 250% since 21 February. However, WAVES’ price has been falling steeply since the end of March. At the time of writing, the 37th biggest coin by market cap was worth $41.86. This was after falling by a dramatic 17.11% in the past 24 hours. Before this, WAVES had been impressing traders with a weekly rally of more than 25%.
While possibly connected to USDN’s own fall from grace, Waves blockchain founder Sasha Ivanov added more fuel to the fire by blaming the crypto
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