Allegations Alameda Analysis is manipulating $WAVES shut down as ‘bullshit conspiracy’

by Cryptospacey

$WAVES founder Sasha Ivanov posted a tweetstorm accusing Alameda Analysis of foul play on April 4. Ivanov claims the buying and selling agency is behind an organized FUD marketing campaign with the intent to induce panic promoting.

$WAVES hit a brand new all-time excessive of $63.59 final week. However since then, a brutal sell-off adopted, marking a 30% drawdown on the time of writing. In the meantime, broader market worth motion has seen relative stability over the identical interval.

Digging deeper, Ivanov concluded that Alameda Analysis is liable for the sell-off. However why would he suppose that?

$WAVES daily chart
Supply: WAVESUSDT on TradingView.com

$WAVES goes on a tear

Ivanov traces the story again to a Bloomberg article masking the resurgence of $WAVES, which coincided with Russia’s invasion of Ukraine on February 24. Peak to trough positive aspects from that date is available in at 600% over three weeks.

The article included a quote from a Researcher at crypto funding agency Babel named Peter Guo, who posited that that is seemingly a response to sanctions slicing off conventional financial channels.

“Some folks could possibly be speeding into Waves in response to potential financial sanctions and restricted conventional cost channels.”

Though folks determine $WAVES as a Russian venture, Ivanov mentioned he and $WAVES had minimize ties with Russia. Whereas Ivanov did work and examine in Russia, he made clear that he’s Ukrainian-born.

Giving his tackle the $WAVES worth pump, Ivanov dismissed the Russian invasion as an element. As a substitute, he attributed the spike to bulletins for the 12 months forward made a couple of weeks prior, significantly the launch of a U.S subsidiary agency.

“I don’t suppose there’s any connection between the state of affairs in Russia and the present market motion round Waves.”

Why does Ivanov suppose Alameda Analysis is focusing on $WAVES?

It was the primary half of March, as $WAVES was starting its ascent, that Ivanov mentioned he seen a marketing campaign of “bitter folks” bad-mouthing the venture.

Ivanov claims somebody, through the Vires Finance lending and borrowing platform, had contacted him to borrow a million $WAVES. He assumed this could be used for shorting the token.

Nonetheless, Ivanov turned down the request because it’s firm coverage to not promote or lend $WAVES. Additional digging on who could possibly be behind this revealed an tackle starting 3PHkZUJ, which Ivanov claims is held by Alameda Analysis.

This account has a sample of exercise that consists of sending borrowed $WAVES to Binance to promote, thus miserable the value.

Alameda Analysis and FTX CEO Sam Bankman-Fried didn’t go into an in depth reply,  and solely made a easy tweet in response:

All the identical, it’s not the primary time Alameda Analysis has been accused of questionable practices. An article posted on Substack in 2021 accused the agency, together with Cumberland International, of being crypto insiders colluding to pump the Bitcoin worth through Tether.

Since this incident blew up, a protocol change proposal has been submitted to Vires Finance to cut back the liquidation threshold and enhance the APR paid by debtors – making borrowing $WAVES an unattractive deal.

“To be able to stop worth manipulation and shield the ecosystem I suggest to short-term cut back the liquidation threshold for Waves and USDN borrowing to 0.1%. Additionally I suggest to restrict the utmost borrow APR to be 40%.”

Though the intention is to “stop worth manipulation” some would argue that is protectionism in motion.

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