Waves founder announces new stablecoin as USDN depegs

Days after USDN lost its peg with USD, Waves CEO and founder Sasha Ivanov promised that his new stablecoin will be “undepeggable.”

Sasha Ivanov, founder and CEO of the Waves blockchain platform, is planning to launch a new stablecoin amid the ongoing crisis of the Waves-backed stablecoin, Neutrino USD (USDN).

Ivanov took to Twitter on Dec. 20 to announce the USDN situation resolution plan alongside a new stablecoin project.

“I will launch a new stablecoin,” Waves founder wrote, adding that there is going to be a “USDN situation resolution plan set in motion before.” He stressed that nothing new will be launched or announced until the USDC plan resolution is set in motion.

Without specifying the details on the nature of the upcoming stablecoin, Ivanov promised that the stablecoin will be “undepeggable.” 

“The most important thing is to make people whole eventually, let’s focus on that.”

Neutrino USD is an algorithmic crypto-collateralized stablecoin pegged to the United States dollar and backed by Waves. The USDN stablecoin has been struggling to maintain its 1:1 peg, losing the peg multiple times in 2022.

USDN saw the first major crash in early April 2022, with the stablecoin tumbling to $0.8. The tok has subsequently lost its peg several times since, with the latest crash bringing USDN to as low as $0.53. At the time of writing, one USDN token is worth $0.58, according to CoinGecko.

Neutrino USD (USDN) one-year price chart. Source: CoinGecko

The news comes amid the Waves (WAVES) cryptocurrency seeing a significant drop in price due to the South Korean crypto exchange authority, the Digital Asset eXchange Alliance (DAXA), issuing a warning on WAVES on Dec. 8. According to data from CoinGecko, WAVES has lost about 30% of its value since the DAXA released the warning.

Related: Japan recommends against algorithmic backing in stablecoins

Waves subsequently pointed to “misinformation” disseminated by some centralized exchanges that have been shorting the Waves token, despite “no fundamental distress being present in the Waves Ecosystem.”

“The Waves team responded to the baseless allegations quickly and since then some exchanges have begun to roll back their restrictions,” Waves noted in a blog post.

Waves did not immediately respond to Cointelegraph’s request for comment.