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 claim that the WAVES token was flagged by Digital asset collective DAXA as being fundamentally unstable, which prompted the South Korean exchange Upbit to suspend WAVES deposits on Dec. 8 at 9 AM UTC.
The Waves team responded to the baseless allegations quickly, but the damage had already been done as some exchanges had already restricted WAVES without any fact-checking, causing liquidity issues and uncertainty in the market.
AS CEX had halted the deposits, the organic liquidity of waves also decreased, creating fear in the market for WAVES tokens. Due to this, opportunistic traders aggressively shorted the WAVES token, resulting in increased volatility and unstable market conditions.
Waves co-founder also requested All CEXs to disable Waves futures markets, calling it a breeding ground for FUD.
The Open Interest (OI) on WAVES dramatically increased across various centralized exchanges (CEXs). Within eight hours, OI rose to $62.5 million from a baseline of $22.6 million, an increase of 176%.
