The creator of the Waves cryptocurrency ecosystem, Sasha Ivanov, has decided not to launch a new stablecoin and instead focus on the existing Neutrino Index algorithmic token project. Ivanov announced this on his Twitter account.
According to Ivanov, it is always better to resume work on previous projects than to fail in the search for a new solution. However, the details of the development of the Neutrino Index token are not specified.
Background
In December 2022, Ivanov announced the creation of a new stablecoin after multiple decouplings of the USDN algorithmic stablecoin from the US dollar, which was launched by Waves developers. In 2022, USDN lost its peg to the dollar five times. The biggest drop occurred in early April, when USDN prices plummeted by 30% to $0.7.
The announcement of Ivanov’s new stablecoin project drew criticism from the crypto community. Users claimed that they had lost confidence in the ecosystem after multiple decouplings of USDN. Ivanov was even compared to the founder of the collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, who assured clients of the stability of the trading platform.
In January 2023, Waves developers announced that they would transform the failed USDN stablecoin into the Waves Ecosystem Index Token (WIXT) index token. Developers acknowledged that USDN was unable to withstand the “unprecedented market volatility.” By the end of April, Waves plans to collateralize the token with $15 million.
Waves also announced that USDN holders would receive a new token, POWER, through an airdrop. It is expected that POWER will be launched based on DAO management, the behavior of which will maintain predictability in any market conditions.
Current state of the Neutrino Index token
As of the time of writing, the quotes for the Neutrino Index token (XTN) continue to remain low, at $0.05 according to CoinGecko. The market capitalization of the token is only $5 million.