Waves Labs announced that the DAXA alert has led to increased short selling of the WAVES token. It also reported that it caused liquidity problems and market instability. However, the founder of Waves made a call. The founder asked exchanges like Binance to discontinue futures for Waves Coin. He also said that shorts are spreading “FUD” about the altcoin. The Wawes founder made the same claim when the altcoin price broke below $50. Here are the details…
Altcoin founder calls: “Deactivate”
Sasha Ivanov, founder of the Waves blockchain, made a call to centralized exchanges. Ivanov has asked exchanges like Binance, Kraken, and KuCoin to disable waves token futures. Also, Waves Labs reported that Futures data did more damage than a DAXA warning on Dec. According to Waves Labs, Open Interest (OI) on WAVES on various centralized exchanges (CEXs) increased significantly following an Upbit announcement on December 8 to suspend WAVES token deposits. The Wawes founder said that Waves does not need futures markets and added:
Waves does not need futures markets. They are a breeding ground for FUD and make money from short positions, so they are profitable. I request all cex to disable Waves futures markets.
#Waves does not need $waves futures markets. They are a breeding ground for FUD and making money off short positions, profitable because of it.
I kindly ask all #cex's to disable Waves futures markets.@binance @kucoincom @krakenfx @HuobiGlobal @okx @Bybit_Official
— Sasha.waves (@sasha35625) December 21, 2022
South Korean exchange Upbit suspended WAVES deposits on December 8 after it received a warning from Digital asset collective DAXA that the token was fundamentally unstable. The Waves team quickly disputed these claims. However, the project suffered as some exchanges restricted WAVES as it caused liquidity problems and uncertainty in the market. This led opportunistic investors to aggressively sort positions in the WAVES token. It also resulted in increased volatility and unstable market conditions.
He’s down because he’s shorted too much
On December 8, WAVES derivatives saw a 176% increase in OI from a stable historical baseline of $22.6 million. Within eight hours, OI had grown to $62.5 million. This is a level not seen since the beginning of August. This increase in OI is almost entirely due to investors shorting WAVES, as evidenced by the Funding Ratio, which measures the distribution of long and short positions in futures contracts.
Waves Coin has lost nearly 40 percent in the last 2 weeks. The founder made the same “FUD” claim when the price started to drop from $50. Looking at the price performance of the altcoin for the last year, it is seen that the downward trend continues. In the last 24 hours, the Waves price has dropped about 4.5 percent. Its price is currently trading at $1.52 levels.
