Faced with DAXA’s warning that the WAVES token is a to invest in, WAVES denied the allegations and asserted that the token is not affected if USDN loses its peg.
Waves has released a statement on its official website regarding the Korean Digital Asset Exchange Association (DAXA) investigation of the tokens. Specifically Upbit and Bithumb believe that the price of the WAVES token may become volatile due to USDN losing its peg.
But the platform claims USDN is an independent project built on the blockchain that uses WAVES as collateral, it is not intrinsically linked to the WAVES token.
There is only one way USDN can directly affect the price of WAVES, and that is to buy back WAVES from the contract and sell WAVES on the market. However, only 4.2% of the total supply of WAVES is held in the Neutrino smart contract, which equates to 9.8% of the daily trading volume of all exchanges.
Besides that, USDN has no role in the issuance of tokens, nor can it increase the supply of WAVES due to Neutrino’s daily swap limit and support rate protection, unable to exhaust all reserves. Therefore, the impact of the full acquisition of all WAVES in the smart contract is negligible and the newly released WAVES is zero.
As such, the platform believes that concerns about the WAVES token are unfounded misinformation and they are communicating with the Upbit and Bithumb teams to continue working with them to correct this misunderstanding.
Per previous news, DAXA has marked WAVES as an investment alert, indicating that WAVES can be used as collateral for stablecoin USDN and USDN is a digital asset linked to the price of USDN. value of one dollar through the algorithm. Waves Neutrino eco-stablecoin protocol USDN has been losing pegs since Nov.
On December 7, DAXA also delisted the Korean game giant Wemade’s WEMIX token on the grounds that the token was incomplete and provided false information.
Influenced by the negative news, the token is continuously down 10% and is currently trading at $2.10.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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