Waves-backed stablecoin USDN drops further after regulator warning and exchange delisting
WAVES price and its USDN stablecoin lose value after the Digital Asset eXchange Association issues a caution notice and Upbit exchange delists the token. Algorithmic stablecoins have had a rough year, starting with UST de-pegging to zero and the subsequent blow-up of Terra’s LUNA token which was used for the asset’s backing. Algorithmic stablecoins are not fully collateralized and rely on different mechanisms to maintain the peg, making them inherently fragile to market conditions. The UST implosion created a domino effect that caused another stablecoin , Magic Internet Money (MIM) to de-peg. Despite the fragility of algorithmic stablecoin s, new projects like Djed by Cardano (ADA) are still planning on launching, but that doesn’t mean that the concept has improved since the crises seen earlier in the year. Let’s look at the latest de-peg event in the cryptocurrency space. Warning issued for WAVES and its USDN stablecoin On Dec. 8, the Digital Asset eXchange Association (DAXA), whic...