Trader Makes $113k Shorting USDN

A brilliant trader gained $113,000 by trading USDN amid a collapse of the stablecoin to $0.51.

The USDN crisis turned out to be a blessing for one smart trader, who made $113,000 on a successful trade in the vanishing stablecoin. The dwindling stablecoin did not discourage the trader, but it was an opportunity to earn.

According to Lukochain, the anonymous trader had a 100% win rate, making a profit every time he bought and sold USDN.

Why USDN was debugged

The past few months have presented a significant challenge to the once decorated algorithmic stablecoin. Waves, the company behind the stablecoin, claimed it was pegged 1:1 to the US dollar. In April and May, USDN experienced a decline. But by the end of the summer, it went on to retain its value.

Significant challenges began in late August. USDN was down again but recovered in October. In November, the stablecoin suffered a decline, which has led to its current predicament.

Matters worsened on December 8 when one of the South Korean exchanges issued an Upbit an investment alert, The announcement indicated that Upbit was closely monitoring the unfolding events in USDN and cautioned its investors against major losses arising from Waves’ high levels of volatility.

The Digital Asset Exchange Association of South Korea has also classified USDN as an “Investment Warning”. The Red Notice further affected USDN, reducing its value to below $0.60.

Waves Launches a New Stablecoin

Sasha Ivanov, creator of the open-source blockchain Waves, announced Establishing another stablecoin in the ecosystem following the announcement of plans to stabilize USDN. Ivanov said:

“Two things: I will be launching a new stablecoin – before that a $USDN position resolution plan will be launched.”

Sasha Ivanov, Waves Founder

His tweet did not provide an expected timeline for the unveiling of the new stablecoin.

Ivanov denied claims that a new stablecoin Corresponded to the fall of the USDN. He clarified that the new protocol will use a variety of protocols that react to current market conditions. However, its launch will happen after the stabilization of USDN.

USDN came to market as Waves built-in token. Minting USDN requires users to lock in the WAVES Neutron protocol. Unlocking WAVES takes the stablecoin out of circulation. Neutrino is a multi-asset protocol algorithm that created the stablecoin in Waves. High volatility in the crypto market causes price fluctuations, and investors have the ability to predict extreme swings.

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