'Russian Ethereum' Waves Crashes 23% Amid 'Ponzi Scheme' Allegations

'Russian Ethereum' Waves Crashes 23% Amid 'Ponzi Scheme' Allegations

The native token of the Waves WAVES/USD blockchain project fell by more than 23% on Tuesday.

What Happened: According to data from Benzinga Pro, WAVES fell to an intra-day low of $32.84. After rallying more than 200% in March, the token has seen a massive decline over the last week.

Data shows that WAVES — often dubbed the "Russian Ethereum ETH/USD" — has lost 43% of its value since hitting an all-time high of $61.30 on March 31.

The Layer 1 blockchain’s stablecoin USD Neutrino USDN/USD has also lost its peg to the U.S. dollar, falling to a low of $0.72 on Tuesday.

Last week, pseudonymous analyst “0xHamz” posted a thread on Twitter Inc TWTR alleging that the Waves blockchain was “the biggest ponzi scheme in crypto.”

The analyst presented a data-backed argument that suggested that the project’s stablecoin would only be sustainable so long as WAVES’s market cap saw continuous growth.

Meanwhile, the Waves blockchain founder Sasha Ivanov said the thread was nothing more than a campaign “fuelled by a crowd of paid trolls” to bring WAVES down.

Ivanov then went on to suggest that FTX CEO Sam Bankman-Fried’s Alameda Research was behind a scheme to borrow large amounts of money through Waves’ lending protocol Vires Finance and short WAVES.

Ivanov also suggested that Alameda was behind the coordinated FUD attack on WAVES to instigate panic selling and further benefit their short position.

Bankman-Fried called the accusations a “ bulls**t conspiracy theory.”

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