{"id":523519,"date":"2022-12-08T21:01:47","date_gmt":"2022-12-08T18:01:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/waves-backed-stablecoin-usdn-drops-further-after-regulator-warning-and-exchange-delisting\/"},"modified":"2022-12-08T21:01:47","modified_gmt":"2022-12-08T18:01:47","slug":"waves-backed-stablecoin-usdn-drops-further-after-regulator-warning-and-exchange-delisting","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/waves-backed-stablecoin-usdn-drops-further-after-regulator-warning-and-exchange-delisting\/","title":{"rendered":"# Waves-backed stablecoin USDN drops further after regulator warning and exchange delisting"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2605158355a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2605158355a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/waves-backed-stablecoin-usdn-drops-further-after-regulator-warning-and-exchange-delisting\/#%E2%80%9D_Waves-backed_stablecoin_USDN_drops_further_after_regulator_warning_and_exchange_delisting_%E2%80%9C\" >&#8221; Waves-backed stablecoin USDN drops further after regulator warning and exchange delisting &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/waves-backed-stablecoin-usdn-drops-further-after-regulator-warning-and-exchange-delisting\/#Warning_issued_for_WAVES_and_its_USDN_stablecoin\" >Warning issued for WAVES and its USDN stablecoin<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Waves-backed_stablecoin_USDN_drops_further_after_regulator_warning_and_exchange_delisting_%E2%80%9C\"><\/span>&#8221; Waves-backed stablecoin USDN drops further after regulator warning and exchange delisting &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-30a6cf80>Algorithmic stablecoins have had a rough year, starting with UST de-pegging to zero and the subsequent blow-up of Terra\u2019s LUNA token which was used for the asset\u2019s backing. Algorithmic stablecoins are not fully collateralized and rely on different mechanisms to maintain the peg, making them inherently fragile to market conditions.\u00a0<\/p>\n<p>The UST implosion created a domino effect that caused another stablecoin, Magic Internet Money (MIM) to de-peg. Despite the fragility of algorithmic stablecoins, new projects like Djed by Cardano (ADA) are still planning on launching, but that doesn\u2019t mean that the concept has improved since the crises seen earlier in the year. <\/p>\n<p>Let\u2019s look at the latest de-peg event in the cryptocurrency space.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Warning_issued_for_WAVES_and_its_USDN_stablecoin\"><\/span>Warning issued for WAVES and its USDN stablecoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Dec. 8, the Digital Asset eXchange Association (DAXA), which consists of the five major crypto exchanges in Korea issued a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/upbit.com\/service_center\/notice?id=3185\">warning<\/a> for Waves and its (WAVES) token. <\/p>\n<p>The warning comes after the stablecoin, USDN which is backed by WAVES, de-pegged and has thus far failed to re-establish the $1 peg in more than 180 days. This means that the USDN protocol may liquidate WAVES through the automatic arbitrage process in an attempt to regain the peg. On Dec. 8, USDN was 16% below the peg. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/a7d7de05-0317-40f3-b562-6ac060e7f637.png\"><figcaption style=\"text-align: center;\"><em>USDN\/USD 180-day chart. Source: Coingecko<\/em><\/figcaption><\/figure>\n<p>The move by DAXA to issue the warning has led Upbit to delist both WAVES and USDN. The delisting, combined with the DAXA warning <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to be playing some role in the price decline currently seen in WAVES and USDN.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24WAVES&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$WAVES<\/a> and its stablecoin <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDN&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$USDN<\/a> both crashing.<\/p>\n<p>Upbit delisting WAVES with a strong &#8220;investor warning&#8221; lmao.<\/p>\n<p>Also hearing rumours of exit scam.<\/p>\n<p>For as long as I can remember this project has been a total shitshow. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/mnPv4aCik9\">pic.twitter.com\/mnPv4aCik9<\/a><\/p>\n<p>\u2014 Byzantine <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> (@ByzGeneral) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ByzGeneral\/status\/1600862960343203844?ref_src=twsrc%5Etfw\">December 8, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Algorithmic stablecoins are not alone in depegging. Constant concerns about Tether\u2019s (USDT) backing and its general solvency continue to raise de-peg fears among all levels of investors. <\/p>\n<p>Over the years, USDT has lost its peg but never to the extent seen with UST and USDN. <\/p>\n<p>As the community continues to reel from algorithmic stablecoins, regulators are taking notice and placing priority on regulating the space. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/waves-backed-stablecoin-usdn-drops-further-after-regulator-warning-and-exchange-delisting\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Waves-backed stablecoin USDN drops further after regulator warning and exchange delisting &#8220; Algorithmic stablecoins have had a rough year, starting with UST de-pegging to zero and the subsequent blow-up of Terra\u2019s LUNA token which was used for the asset\u2019s backing. Algorithmic stablecoins are not fully collateralized and rely on different mechanisms to maintain the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":523520,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/b61600c2-c8fb-4d0d-82e0-257e326b42e9.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74858,74863,74860,74868,75150,75493,76583,71511,73785,4965],"class_list":["post-523519","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin-regulation","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-defi","tag-market-update","tag-stablecoin","tag-waves","tag-government","tag-markets","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=523519"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/523519\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/523520"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=523519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=523519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=523519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}