Sasha Ivanov, the founder of Waves, said that he intends to issue another stablecoin when Neutrino announces plans for the USD (USDN) stablecoin.
Ivanov announced on Twitter, “Two things: – I will launch a new stable coin – Before that a $USDN position resolution plan will be launched.” Ivanov explained that no further details about the new coin will be given until the USDN resolution plan begins. However, he commented that new stablecoins would be “inevitable”.
USDN loses peg
made by ivanov announcement After the recent digging of USDN. The algorithmic stablecoin has struggled to maintain its peg to the US dollar over the past few months.
After a brief decline in April and May, USDN managed to maintain its value until the end of the summer. However, it experienced slightly longer volatility starting in August and continuing through September. After recovering in October, it fell again in November, and subsequent events saw further declines.
On December 8, South Korean exchange Upbit took note of this prolonged decline, issuing an investment alert regarding the stablecoin. “Upbit is monitoring the price trend and believes WAVES is at risk of unexpected investor losses due to price volatility,” the exchange said in its announcement. This later caused USDN to drop further, currently trading below $0.60
Waves Ecosystem Alternatives
USDN is the stablecoin of the Waves blockchain, and is backed by the ecosystem’s native token Waves. To further mine USDN, users must stake their WAVES in Neutrino, an algorithmic, multi-asset protocol based on Waves. Users can later redeem their WAVES tokens by taking USDN out of circulation.
Ivanov clarified that the new stablecoin is not being launched in anticipation of the collapse of the Waves ecosystem. “It’s just time to create a protocol for the current market conditions,” Ivanov said. Said, “It would be easier to stabilize the USDN first and launch the new protocol later.”
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.