The Waves ecosystem algorithmic stablecoin Neutrino USD (USDN) has been de-pegged, and its collateral asset WAVES has been labeled as an Investment Warning asset by the Digital Asset eXchange Alliance (DAXA), according to South Korean crypto exchange Upbit.
The reason for this event was suggested by Upbit that WAVES can be used as collateral for the USDN stablecoin, and USDN is a digital asset that is algorithmically linked to the value of one dollar. Recently, it has been assessed that the value of USDN is generally not linked to 1 dollar.
The exchange has been monitoring the price trend of the USDN stablecoin, and the value of the linked WAVES fluctuates rapidly in the unlikely event of a failure to resolve the usual $1 unlinked situation, which could cause unexpected losses to investors.
Within two weeks of specifying an item of Investment Warning, Upbit will determine whether to end support for the final transaction through a detailed review of the digital asset.
Upbit has suspended trading in WAVES. Users will be able to withdraw their monies during the following 30 days.
Previously, DAXA also detailed WEMIX as an Investment Warning and delisted this token.
According to Coincu data, the price of WAVES has dropped 12.49% in the last 24 hours and is currently trading at $2,034. USDN is now trading at $0.91.
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