South Korea cryptocurrency marked as “investment alert” by exchanges Waves (WAVES) altcoin Its developers have released an official statement regarding the issue.
The developers said the following in their statement:
“Upbit and Bithumb have informed their users today of the risks they see associated with Waves due to the USDN depeg. That’s why Waves is posting a message to the Waves community to clarify the situation.
Upbit and Bithumb believe that WAVES price may become volatile due to the USDN depeg, according to their statement. However, USDN is a separate project built on the Waves blockchain that uses WAVES as collateral; Due to its nature, it is not linked to the WAVES token.
There is only one way USDN can directly affect the price of WAVES: remove WAVES from the contract and sell WAVES in the market. However:
South Korean exchanges said that the reason for the warning for the WAVES token was that the price of the stablecoin of its ecosystem, USDN, which should be indexed to 1 dollar, fell to $ 0.86.
*Not investment advice.