Neutrino USD Loses Peg as WAVES Dives, But Developer Claims It Will be 'Absolutely Fine Very Soon'

cryptonews.com:

Neutrino USD (USDN), the flagship stablecoin of the Waves network, lost its peg to the US dollar following the allegations that the project’s founders had been artificially pumping WAVES, the project's native token.

Waves, which was trading around USD 31 on March 28, nearly doubled its value in a matter of days to surpass the USD 60 mark by March 31. However, the coin started plunging earlier this month as some users claimed the team had artificially impacted prices.

At 7:57 UTC, Waves is trading at USD 35.04, down by more than 22% over the past 24 hours. It's also down 22% over the week.

This crash has also affected the network's stablecoin USDN, which fell to as low as USD 0.72 from its USD 1 peg at one point over the past 24 hours. The stablecoin has since pared some losses and is currently trading around the USD 0.813 price mark, down 11%, according to data by CoinGecko.

Meanwhile, Inal Kardanov, a software engineer and developer advocate at Waves Platform, claims that "USDN will be absolutely fine very soon." 

In a recent Twitter thread, Kardanov said that USDN will not collapse because it is "heavily over-collateralized" and due to the fact that its "depeg is mostly caused by FUD [fear, uncertainty, doubt], not fundamental factors."

Detailing how USDN could get its peg back, Kardanov suggested that the team should give rise to arbitrage opportunities by lowering barriers - particularly the amount of Neutrino System Base Token (NSBT), the Neutrino protocol token, required to lock for arbitrage.

"So with less NSBT locked you can do more swaps and there are way more opportunities to arbitrage," he said, adding that this would also bring new opportunities to NSBT holders.

Users can get NSBT, which helps Neutrino ensure the