Waves will not release a new stablecoin

The creator of the Waves cryptocurrency ecosystem, Sasha Ivanov, decided not to release a new stablecoin, but to focus on an existing project.

Waves developers will not try to create a new stablecoin and will focus on the existing Neutrino Index algorithmic token project. About it on Twitter informed founder of the Waves ecosystem Sasha Ivanov.

According to him, resuming work on old projects is always better than failing to find a new solution. However, the details of the development of the Neutrino Index token are not specified.

Recall that in December 2022, Ivanov announced the creation of a new stablecoin. The decision to launch a new project follows repeated decoupling of the USDN algorithmic stablecon — launched by Waves developers — from the US dollar.

  • In total, USDN lost its peg to the dollar five times in 2022. The largest drop occurred in early April, when USDN quotes fell by 30% to $0.7.

Then Ivanov’s announcement of a new stablecoin caused criticism from the crypto community. Users have claimed to have lost confidence in the ecosystem after numerous USDN decouplings. Then Ivanov was compared with the founder of the collapsed FTX crypto exchange, Sam Bankman-Freed, who assured clients of the stability of the trading platform.

  • In January 2023, Waves developers announced that they would convert the failed USDN stablecoin into a Waves Ecosystem Index Token (WIXT). The developers acknowledged that the USDN was unable to withstand the “unprecedented market volatility”. By the end of April, Waves wants to spend $15 million to secure the token.
  • At the same time, Waves announced that USDN holders would receive a new POWER token as a result of the airdrop. POWER is expected to launch based on DAO management, whose behavior will remain 100% predictable in any market conditions.
  • At the time of writing, the quotes of the XTN index token continue to remain at low levels around $0.05, data CoinGecko. The market capitalization of the token is only $5 million.

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