Coinwern warned of risks associated with USDN and USDD algostablecoins04.01.2022
Coinwern.com exchange warned about the risks of price fluctuations for cryptocurrencies WAVES and TRON (TRX) due to the loss of Neutrino USD (USDN) and USDD algorithmic stablenecoins pegged to the dollar.
“Currently, there are concerns that the USDN and USDD peg is not working well. As a result, the likelihood of price swings in WAVES and TRON (TRX) associated with each of the above-stablecoins may increase, so be careful when investing,” the statement said.
At the time of writing, USDN is around $0.96 and USDD is around $0.98 (CoinGecko).
In May, amid the collapse of Terra’s UST, the exchange drew users’ attention to the cryptocurrencies traded on the platform, which are involved in maintaining the price of some algorithmic stablcoins. In addition to the aforementioned assets, the list includes:
NEAR – USN;
KAVA – USDX;
HIVE – HBD.
Coinwern noted that a sudden change in the collateral value or incorrect operation of the stablecoin algorithm can lead to sharp changes in the rate of related assets.