Waves founder worries futures trading is killing native token

Sasha Ivanov, founder of the Waves blockchain, has asked centralised exchanges to disable futures trading because it is a breeding ground for FUD.

Futures Markets not needed

In a recent tweet, the founder of Waves stated that $WAVES, the native token for the Waves blockchain, did not need futures markets. He added that they were a breeding ground for FUD, and that money was being made off short positions.

#Waves does not need $waves futures markets. They are a breeding ground for FUD and making money off short positions, profitable because of it.

I kindly ask all #cex‘s to disable Waves futures markets.@binance @kucoincom @krakenfx @HuobiGlobal @okx @Bybit_Official

— Sasha.waves (@sasha35625) December 21, 2022

Ivanov stated that such trading could be detrimental to the long-term stability and value of the token. He argued that futures trading allows speculators to bet on the price of the token without actually owning it, which can lead to artificial price fluctuations and destabilisation. 

Ivanov also pointed out that the Waves token is not designed to be a speculative asset, but rather a utility token used for transactions and voting on the Waves platform.

Mixed reactions

Ivanov’s request has been met with mixed reactions from the community. Some have supported his position, arguing that futures trading can be harmful to the stability and value of a token. Others have criticised Ivanov’s call, stating that futures trading is a legitimate way for investors to manage risk and that it should not be restricted.

Despite the disagreement, Ivanov’s request has sparked a larger conversation about the role of futures trading in the cryptocurrency market. As the market continues to mature, it will be important to carefully consider the potential impacts of different trading instruments on the stability and value of cryptocurrencies.

From a technical perspective, $WAVES is down 5% on the day so far with a price of $1.50. Very strong support can be found at $1.39, so a bottom might be seen at this level.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.