Crypto

Waves Founder Suggests Crypto Regulation to Control Market Manipulation | bitcoinist.com

As the crypto market faces a long-lasting winter and the Fed adds fuel to the fire with its hawkish approach to fighting inflation and protecting users, global tech moguls and Industry experts have shared their opinions on the situation.

Similarly, in an interview, Sasha Ivanov, founder of Wave, a blockchain company allowing users to launch custom tokens, said that government authorities need to regulate the crypto industry to manage market manipulation and prevent troublemaking project investors.

Related Reading: Why Japan Could Ease Crypto Regulations to Revitalize the Economy

The CEO had a public spat with FTX founder Sam Bankman-Fried and accused him of illegally manipulating the prices of his project, WAVES. In response to the interviewer’s question on how the issue was resolved, Ivanov noted;

“Crypto market manipulation is a sign of the times; as much as we in space wish it weren’t, it’s there nonetheless. People with large balances and high levels of intelligence can profit at the expense of retail traders. Our resolution is regulation, which is on its way. In the meantime, we have been working on our own solutions, such as the upcoming launch of PowerDAO to help us regulate our own ecosystem.

The WAVES-backed USDN stablecoin lost its peg with the US dollar several times in 2022. Finally, it failed to defend its peg with the US dollar and fell to $0.90 on August 26.

While talking about how he solved this problem and took control of the situation in April when the value of the USDN fell to $0.80, Ivanov explained that the April dumps happened due of the six whale accounts excessively borrowing cash from Vires Finance. As the amount of interest continued to rise, it became impossible for the over-indebted whales to repay the loan. As a result, this disrupted the prices of all cryptocurrencies and probably WAVES. He further added;

“That’s when I had to step in to take about $500 million of that bad debt into my own wallet to repay it gradually. Failure to do so would have allowed these accounts to be liquidated, creating increased selling pressure due to the amount of USDN sold.

The price of WAVES is currently trading around $4.50. | Source: WAVESUSD price chart from TradingView.com

Ivanov points Crypto regulation as the only way to protect users

Expressing concern over the Tornado cash ban, which has put stablecoins like USDC and USDN under the radar, the Waves CEO pointed to regulations to maintain transparency and ensure user protection. He said;

“While not the most popular opinion, I believe we need regulation to protect users. As such, we absolutely support finding real and effective solutions through conversations smart with regulators. That being said, we need to respect the values ​​of immutability, censorship resistance, and decentralization when regulating – there needs to be agreement here, or the core values ​​of crypto will be compromised.

Related Reading: Bitcoin Bill Rejected by Paraguay’s President – Here’s Why

In addition to supporting the regulatory vision, Ivanov also criticized the regulator’s decision to ban Tornado Money altogether and shut down its developer. He pointed out that the government had abused its enforcement measures in this case and said it was like giving prison terms to the inventor of a knife as he had created it and that the criminals had used it, it was his fault.

Featured image from Pixabay and chart from TradingView.com

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