Waves Labs has released a report that claims that according to Futures data, a DAXA warning on Dec. 8 did more harm to the WAVES token than the de-pegging of the USDN stablecoin “ever could.”
Waves asserts that the WAVES token was identified by the digital asset collective DAXA as being fundamentally unstable, which resulted in the WAVES deposits section of the Upbit exchange in South Korea being disabled on December 8 at nine in the morning UTC.
The Waves team promptly reacted to the false charges, but the harm had already been done since several exchanges had already banned WAVES without doing any fact-checking, which caused liquidity concerns and instability in the market.
Fear spread across the market for WAVES tokens as a direct result of CEX’s decision to cease deposit operations. This caused the organic liquidity of waves to decline. Because of this, opportunistic traders aggressively shorted the WAVES token, which caused the market conditions to become more volatile and unpredictable.
The co-founder of Waves also urged that all CEXs suspend Waves futures markets, describing them as a fertile field for spreading fear, uncertainty, and doubt.
Across a number of centralized exchanges, the Open Interest (OI) on WAVES saw a significant spike in volume (CEXs). An rise of 176% was seen in OI in only eight hours, with the amount going from a baseline of $22.6 million to $62.5 million.
Compiled by Coinbold