The ordeal of stablecoins appears to be far from over, as Waves’ own algorithmic stablecoin USDN has lost its $1 peg. At the time of writing, each USDN is worth $0.52.
Read CRYPTONEWSLAND onThe incident has raised the alarm of many people, who expressed worries about the project’s stability. Someone even said Waves is the “next LUNA” in the making.
To this retweet, Waves Founder Sasha Ivanov replied, saying that it will not happen. However, an earlier tweet said that Waves will issue another version of its stablecoin. This is precisely what happened with Terra USD (UST), which is now TerraUSD Classic (USTC). Consequently, this narrative caused many to remember what happened to Terra and Do Kwon.
At the time of writing, each USTC is worth $0.020.
Meanwhile, in response to the clamor, Ivanov explained that the new stablecoin will be more “attuned to the current market conditions.”
Waves is a blockchain network that uses the Proof-of-Stake (PoS) protocol. It has its own ecosystem that composes mainly of a decentralized exchange and crypto wallet. In addition, developers can deploy their own smart contracts and decentralized applications (DApps).
Meanwhile, an algorithmic stablecoin is different from leading stablecoins today like Tether USD (USDT) or Circle USD (USDC). The two stablecoins claim to be backed by US dollar reserves in a 1:1 ratio.
On the other hand, algorithmic stablecoins are not backed by such assets. Instead, they are backed by a highly complex algorithm that works alongside the protocol’s native asset.
#DTXExchange(DTX) demonstrates the promising potential for significant returns amid the challenging market conditions of #SUI…
Explore the potential of #BlockDAG, #Jupiter, #Optimism, #LINK, and #Starknet for substantial returns in 2024.…
🚀 Bitcoin to hit $100k? Experts reveal shocking new price target! #Bitcoin #Crypto #BTC #Investing…
🚀 5 key reasons why Bitcoin (BTC) might hit an all-time high soon! #Bitcoin #BTC…
#ShibaInu breaks free from bearish grip! 🚀 Analysts signal potential trend reversal as key levels…
#Solana teeters on the edge of a breakout, as traders eagerly anticipate its next move…