Waves Fell 15% After Their Stablecoin USDN Fell to 86 Cents
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Waves claims that the Alameda Research fund, which promotes FTX and Solana, is behind the incident, and it decided to short the USDN.
You may ask, is it possible to short a stablecoin if its price should always be equal to $1, at least for 'dollar coins'? Actually, yes. If demand is getting really high, you may see how USDT and USDC slightly deviate from $1. And these are top stablecoins, fully backed by cash.
But USDN is not so stable (pun intended). As you may know, USDN is an algorithmic stablecoin, which means it is not backed by cash, but by other cryptocurrencies. Its capitalization is many times less than that of the market leaders. Therefore, if you have enough funds, you may quite possibly short it.
If Waves is right in their suspicions, why do you think Alameda Research is doing this? I think the reason is that Waves had a chance to become one of the biggest blockchains in the future. And right now we may witness the beginning of a real financial war in the crypto world.
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