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.

Since March, Waves went up like 200% from $18 to $60, and then crashed 50% after the scam started unraveling.

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

https://forum.vires.finance/t/set-waves-usdn-eurn-liquidation-threshold-to-1-max-borrow-apr-for-all-assets-to-400/128

The founder says this proposal is to protect Waves ecosystem from greed. Lmao

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.