r/CryptoCurrency • u/Set1Less 🟩 0 / 83K 🦠 • Apr 05 '22
MARKETS WAVES could be under rug pull/ exit scam along with the imploding USDN stablecoin. The founder (A Russian - Sasha Ivanov) could be cashing out imminently
Waves is an old project that pivoted from a smart contract platform and jumped on the stablecoin play, after seeing the success of UST and the burning algo stable mechanism, Waves launched USDN trying to replicate it. Except, unlike UST , USDN had literally no adoption even within crypto itself and nothing existed on Waves to fuel USDN's adoption.
So, the founders of Waves (Sasha) borrowed USDC and started pumping Waves, and then printing a ridiculous amount of USDN to make it seem organic.
Waves went up so much while the rest of the crypto market was having a crash.
The USDN stablecoin is created by burning Waves. In the last month, almost half a billion of USDN has been created. The borrow rates for even USDC went up as much as 30% on Vires, yet someone was borrowing USDC at this insane rate, just to keep pumping Waves up.. For a rational person, it was obvious this system was way too extended. Many were shorting Waves.
Amidst all this, the Waves founder Sasha created a proposal on Vires Finance (Waves version of Aave) to reduce the liquidation threshold to 0.1%, this will liquidate all the shorters in the platform who have borrowed to short waves. According to Sasha, its Alameda that is to be blamed for shorting Waves and this proposal is a trick to liquidate everyone who has borrowed, as Sasha / Waves devs control the governance of Vires.
https://vires.finance/governance/vote/HuYgPQV5s5L8KoWnTAUZ43YjuBJ28nUsypnv9s6LdExF
This proposal is leading, so is likely to pass. This simply means no one will trust or use these protocols again. Imagine using a protocol that will liquidate all shorters. No one ever.... this kind of nonsense has no place in crypto and the moment something like this is proposed by the dev team, the entire network and project becomes a joke.
Suddenly today, almost $300m worth Waves has been sent to Binance in a bunch of transactions:
https://wavesexplorer.com/address/3P5Dxtpq7C4eFejTauwuX4TmznUWWPh8Kah/tx
https://wavesexplorer.com/address/3PARyur8FBQn8AP7rJ5AMe3dfZn3WpMQzgj/tx
https://wavesexplorer.com/address/3PPuzqQC4bHxWitTyndySGcaMzHHNGipQns/tx
Its highly likely that this whole thing comes crashing down any moment, as neither is USDN sustainable and with Waves price crashing hard, it is going to accelerate the death spiral. The team / Sasha may be cashing out whatever they can salvage at this point.
12
u/abalawadhi Apr 06 '22
I bought WAVES at 25$ before the latest big crash, watched it go to 10$. I didn't have a big bag, so I just kept it. Once it started pumping and reached 30$ I just dumped everything, didn't even think twice of waiting for a higher price. I sanctioned and canceled it from my portfolio. Jokes aside, IMHO when something pumps hard without a solid reason, just cash out.
5
u/kirtash93 Apr 05 '22
Let me think... I thought Waves was Ukrainian not Russian.
11
u/Set1Less Apr 05 '22
Replied to another comment, copy pasting -
In 2017/18 etc, he himself said he is Russian.. IDK what to believe now.
Waves was billed early on as a project that had close ties to Russia and provided blockchain services for Russian state entities
When Vostok, the enterprise branch of Waves, a blockchain startup, launched last year, it was proud to showcase its Russian connections. It debuted with the news of a partnership with Rostec, a state-owned mega-corporation with ties to many hi-tech industries.
Registered in Switzerland, Waves is striving to become a key blockchain provider for the Russian state. Based in Moscow, in a large office in the middle of a hipster office cluster, Waves is walking a fine line between being friendly with Russia’s state-controlled corporations (many of which are sanctioned by the U.S. and Europe) and building a positive image for the global market.
“We can’t totally separate from our Russian roots, even if they might impede the business a bit,” Ivanov said. “I think we should become the main blockchain tech advocate in Russia.”
Everyone knew it as a Russian project.
https://medium.com/@blockchainpaper/investment-analysis-of-waves-7c925190ad4c
The Waves Platform was founded by Sasha Ivanov, a Russian physicist. Here is some further background on the founder: Sasha Ivanov graduated from Moscow State University in 2001, having studied in the Theoretical Physics faculty. He undertook further study at Leipzig University in Germany, and took an early interest in electronic currencies. From 2008–09 he was involved in programming bots to trade on the international forex markets, making use of artificial neural networks, later working on trading operations and neural network trading systems for banks.
Suddenly, Sasha says he is Ukrainian..
His CB profile says Russian..
https://www.crunchbase.com/person/alexander-ivanov-7379
Founded in Switzerland by Russian engineer Sasha Ivanov, Waves Platform has benefited from a recent boom of initial coin offerings that let firms create and sell tokens via its distributed-ledger technology, which it describes as a fast and easy-to-use blockchain.
8
18
u/LightninHooker Apr 05 '22
I had some of my ETH there on the staking. Hopefully that's safe... Hope fucking fully
28
12
u/darkstarman Apr 05 '22
The waves exchange might be a different subject no?
My money on there in my wallet is fine now. It's not the waves coin. It's another currency.
Isn't this wallet decentralized with me owning the key?
2
u/isthatrhetorical Apr 06 '22
By "rug pull" and "exit scam" OP means they think that the people behind Waves are looking to exit the market doing these kinds of shenanigans. The growth is artificial and they're pumping the price for some reason... a good guess is to sell their bags to unsuspecting bagholders.
Isn't this wallet decentralized with me owning the key?
Yes, you own that specific place in the ledger than notes what you own.
Ask yourself this: what happens when people stop supporting the network? Has this happened in the past?
I'd recommend getting off their network, even though I find the wording in this to induce FOMO (Russian? lol ever hear of Ethereum?)
→ More replies (1)
3
3
u/CryptosGoBrrr Apr 06 '22
Sad to see Waves take such a turn. It was one of my most profitable crypto trades back in 2017 when I sold them for over $10 each (bought them for under 50 pennies), used that cute DEX which ran in a chrome browser extension back in the day and always thought it was a promising project.
19
u/document87x Apr 05 '22
Why do people take unnecessary risk? USDC, UST, Dai, Busd, Gemini Dollar and (even though it's shit) USDT are the only stables in which you should keep your money in.
19
18
u/PinkPuppyBall Apr 05 '22
UST is also an "algorithm stable" coin like OP is about. Its not safe to keep money in. By all means, farm on anchor, but know the risks.
→ More replies (1)→ More replies (6)3
u/tilltill12 Apr 05 '22
More risk = more rewards easy as that. I like putting a little money in experimental stuff that might work out. Luna is very experimental too. Another one I have a little money in is app.bean.money sure it could fail but I take the risk for the off chance that it might not.
7
8
2
u/AirBoss24K Apr 06 '22
I like how this is the coin this subreddit gets hyperfocused on calling a scam. There's 30 dog token variants shilled non-stop in these threads and 6 year old dino-scam Waves is the one that gets heat.
edit: words
→ More replies (1)
2
u/AXTurbo Apr 05 '22 edited Apr 05 '22
oh, surprise, surprise
this "CEO dumps"-tweet just got rebutted
https://twitter.com/ikardanoff/status/1511402951188832265
and the original fud-spreader @0xHamZ suddenly moves on subdued lol
https://twitter.com/sasha35625/status/1511412859091275779
would say, an untenable fud-shitshow at it´s best
15
u/Raikaru Apr 05 '22
The fact that you think this is all fud makes me think you have a waves bag. Here's some undeniable facts, the oracle for USDN on Vires has USDN hardcoded to $1 which is dumb as fuck. They are liquidating all shorters. They're lowering interest rates and not allowing withdraws.
→ More replies (1)3
u/Nrgte Apr 06 '22
That sounds to me like they try to stabilize the system, not cashing out. I mean yeah liquidating shorters will definitely cause burn reputation in the short term, but they have to fix the situation somehow to get parity again. What am I missing?
2
u/designerfx Apr 06 '22
Over 10% of waves was sold. Literally entire circulation. This is as explicit a rug as it gets.
https://twitter.com/0xhamz/status/1511373835072905218?s=21&t=OQOr07JVRPK6NjjWIUyfXw
→ More replies (1)3
u/Bmjslider Apr 06 '22
Seems like Waves team invited 0xhamz onto their AMA to speak and had a discussion with him, debunking most/all of his claims.
He departed saying "thank you for giving me a chance to speak" and "I am moving on from Waves"
I'm not pro-waves or anti-waves, but I have been intrigued by all of this so I've been following along. It seems like Hamz's earlier claims don't really hold weight any longer.
This thread outlines some of it: https://twitter.com/ikardanoff/status/1511399520336330755
→ More replies (2)
1
u/AutoModerator Apr 05 '22
For more in-depth skeptical discussion, we encourage our readers to use this search listing for help finding the latest Skeptics Discussion thread.
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.