waves based stablecoin Neutrino USD (USDN), Its price, which should have been pegged at $1, has plummeted and is currently trading at $0.70.
Crypto journalist Wu Blockchain stated that the situation may have been caused by a technical error or that the stablecoin may indeed have lost its index to the dollar.
According to Chainlink data, the stable currency USDN on the Waves chain has de-linked the peg, and the current price of USDN is only about $0.855. Previous articles about Waves being a Ponzi scheme were widely retweeted. https://t.co/FVlvPOzjzT
— Wu Blockchain (@WuBlockchain) April 4, 2022
What Caused the Stablecoin USDN’s Price Drop?
After the USDN price dropped by surprise, Twitter users accused Waves and the team behind the project and its CEO of running a ponzi scheme.
However, there may be no connection between this decline in USDN and the ponzi scheme claims.
Users think that the reason why the stablecoin lost its stable relationship to the dollar is that people lost faith in this coin after a vote was opened on the USDN platform about manipulating the token.
In case of passing the said vote, all users on the Vires Finance platform will receive their borrowed coins within 7 days as WAVES, USDN or EURN will have to pay with, otherwise it will be liquid.
The reason for the decrease is thought to be due to users selling USDN tokens because of this.
Recently, Sasha Ivanov, founder of the Waves project, altcoin accused the FTX founder of shorting the altcoin after its price lost 15% in the last 24 hours. According to Ivanov, Alameda company linked accounts borrowed 1 million WAVES to short the market.
*Not investment advice.