South Korean exchange Upbit has warned of the risks of price fluctuations for WAVES and TRON (TRX) cryptocurrencies due to the loss of Neutrino USD (USDN) and USDD algorithmic stablecoins to the dollar.

“Currently there are concerns that the USDN and USDD stable are not working very well. As a result, the probability of WAVES and TRON (TRX) price fluctuations associated with each of the above stablecoins may increase, so be careful when investing,” he said.

At the time of writing, USDN price is around US$0.96, while USDD is around US$0.98 (CoinGecko).

In May, during the collapse of Terra’s UST, the exchange drew users’ attention to cryptocurrencies traded on the platform, which are involved in maintaining the price of some algorithmic stablecoins. In addition to the assets above, the list includes:

• NEAR-USN;
• KAVA-USDX;
• HIVE – HBD.

Upbit noted that a sudden change in collateral value or incorrect operation of the stablecoin algorithm can lead to sharp changes in the prices of the assets associated with it.

On June 13, USDD lost its pegged value against the dollar during the general decline of the cryptocurrency market. Analytical firm Nansen noticed that the hedge fund Oapital, which made money with the collapse of UST, began transferring large amounts of USDD and other “stablecoins”.

“It doesn’t look good,” analysts said.

Recall that in May, the Deus Finance DAO project lost its peg against the dollar of the algostablecoin DEI.