February 25, 2024

The founder of Waves, Sasha Ivanov, has accused famous crypto marketing research firm Alameda Research of manipulation following the price slump of the WAVES token, which saw its value plummet by 45% in four days.

Sasha Ivanov’s allegations came at the same period that the native stablecoin of the Wave network, which is otherwise known as USDN, lost a substantial part of its peg against the U.S. dollar after declining to 20% to close the day’s trading at $0.80.

Revealing the allegations against Alameda on Twitter, Ivanov alleges that the market research firm manipulated the value of the WAVES token to cover a shortfall that it intentionally created against the token.

Another firm also accused is FTX, a crypto trading and exchange company charged with promoting a callous social media campaign targeting the WAVE token to trigger panic mode selling among users on the Waves network.

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In another development, the Waves team was accused by many people who alleged that the price of the WAVE token was manipulated via its DeFi platform.

WAVES Rallied To an All-time High Last Month

Last month saw the WAVES token surge by up to 250% and reach its all-t high of $63 the previous month. But the token has been a hyper-inflationary token which predisposes it to fluctuations, and by this, it has tanked 25% and is trading at $35.

While reacting to the allegations of improper conduct as revealed by the Wave founder, the CEO of FTX, Sam Bankman-Fried, waved the allegations by Ivanov aside, calling it a conspiracy theory.

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In a move to protect the Wave network, Ivanov has submitted a new proposal to govern the activities on his company’s platform to curtail price manipulation, protect the platform, and reduce the liquidation threshold for the native Waves network token USDN.

However, the new proposal has been met with stiff opposition from others, with one user on the platform calling it a “terrible proposal.”

USDN Loses Peg

The Neutrino dollar (USDN), which is the native stablecoin of the Waves network, lost its peg to the USD following the crash of the WAVE token yesterday.

As a result, the stablecoin dropped more than 20% while trading at $0.80, according to the CoinMarketCap data.

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Meanwhile, the market capitalization of the USD also took a hit as it experienced a 15% drop in value to stand at $873 million in the past 24 hours.

Analysts believe that the decline may have perhaps begun on the last day of March and caution that the stablecoin would be Liquidated should the value of the WAVES continue to plummet.

The U.S. as a token is minted on the network when users lock up their tickets in the Neutrino smart contract platform, thereby providing enough tokens to fuel further minting required by the network. The stablecoin was initially created to serve as a buffer for the WAVES to prevent price decline and de-pegging, but the aim of the strategy seems to have failed.

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