WAVES risks further price crash as ‘Ponzi’ accusations grow

Key Takeaways:

  • Waves Finance's same name token tumbled 30% after reaching all-time high.
  • The "Ponzi scheme" accusations might fuel the further decline.
  • Waves CEO pointed the finger at Alameda Research.
Waves, WAVES risks further price crash as ‘Ponzi’ accusations grow
image from medium.com

YEREVAN (CoinChpter.com) – WAVES, the native token of dApp building platform Wave Finance, traded at over $42.5 in the European session Monday, after a 30% month-to-date dump. The trend reversal came in the wake of a 480% rally throughout March, which culminated in an all-time high of nearly $64 on Mar. 31.

Waves Finance (WAVES) daily chart. Source: TradingView.com
Waves Finance (WAVES) daily chart. Source: TradingView.com

Moreover, several technical indicators wave a bearish flag, hinting at price dump continuation. For example, the Moving average convergence divergence (MACD; histogram at the bottom) showed a looming crossover, which could push price depreciation further.

The digital asset could seek support from the 20-day exponential moving average (EMA-20). However, if that attempt fails, the next line to lean on would be the $34.5 resistance.

Also read: Waves Finance (WAVES) explodes 117% in a week.

Meanwhile, the trend reversal appeared to be fuelled by the controversy around the Protocol, its borrowing/lending process, and its stablecoin USDN.

Waves Finance vs. Alameda Research

In detail, an anonymous Twitter user called Waves the “biggest Ponzi in crypto,” presenting a lengthy thread explaining their position and pointing out that stablecoin borrowing “has gotten bonkers.”

I will walk you through how the WAVES team is folding leverage to engineering a massive supply squeeze Here is the flow -Deposit USDN on Vires -Borrow USDC on Vires -Transfer USDC to Binance -Buy WAVES with USDC -Convert WAVES to USDN -Start over This is trackable onchain.

commmented the user to their 14 thousand followers.

Additionally, other users noted that holding short positions has been used to pump the price and called potential investors to “watch out.”

Also read: Waves price jumped 77% in seven days — what’s next?

Sasha Ivanov, the chief executive of Waves Finance, came back with a thread of his own, pointing the finger at leading principal trading firm Alameda Research and accusing the latter of triggering panic selling by organizing FUD campaigns.

This campaign triggered liquidity withdrawal from Vires Finance, so I had to really look into what was going on. I started with Vires lending platform because before that someone had reached out to us asking to borrow 1 mln WAVES (obviously to short). But the thing is we never sell (or lend for selling) WAVES. So I started searching on Vires for who could borrow it there.

said Ivanov.

He then claimed to have found a link to Alameda Research’s “verified address” that executed the said transactions. However, the snapshot of the address did not constitute solid proof.

Also read: Bitcoin holds above $45K while crypto ownership doubles in the U.S. and Asia-Pacific.

Ivanov also added that “Waves is gonna be a hard nut to crack guys. Do not sell us short!” while a crypto trader with a vast following called the whole controversy and Ivanov’s attempts to save his face an “absolute clusterf*ck.”

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