WAVES cryptocurrency raised suspicions among regulators
It became known: the management of blockchain project Waves received an “investment warning” from the Korea Federation of Exchanges (DAXA). The reason is that native Stablecoin USDN has too high volatility. Crypto-exchange Upbit will decide in the next 2 weeks whether to stop transactions with WAVES.
The Digital Asset Exchange Joint Advisory Body (DAXA) has named Waves (WAVES) as a risky asset. This applies to the two target markets on the Upbit exchange: WAVES/KRW, WAVES/BTC. The fact is that the virtual coin can be used as collateral for USDN Stablecoin, and this cryptocurrency is algorithmically pegged to the value of the US dollar (USD). Recently, however, USDN quotations began to fluctuate wildly and diverged from $1.
Upbit experts have been monitoring the USDN price trend for several weeks and found out: there is a high probability that the value of the pegged cryptocurrency WAVES could also fluctuate rapidly. This would potentially lead to losses for investors.
Over the next two weeks, Upbit management will determine whether or not to discontinue final support for WAVES on its platform. The exchange team has initiated a vetting process to designate warning points. Digital assets designated as risky cannot be deposited on the trading platform until the review process is completed.