• About
  • Contact
  • Privacy Policy
  • Terms and Conditions
Friday, May 9, 2025
The VR Soldier
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases
No Result
View All Result
The VR Soldier
No Result
View All Result

Tron’s USDD Stablecoin Faces Same Fate as Terra Luna’s UST

Algorithmic Stablecoins Are Having a Rough Year

Will Izuchukwu by Will Izuchukwu
June 15, 2022
in News
Reading Time: 3 mins read
0
TRON TRX Cryptocurrency. TRON coin growth chart on the exchange, chart. High quality illustration
28
SHARES
Share on TwitterShare on Facebook

Another algorithmic stablecoin appears to be in danger of losing its peg following the UST-Terra debacle. Investors are also currently in fear of having to face the same fate as Terra’s UST historical fall.

USDD is a stablecoin that runs on TRON’s blockchain and has a similar algorithm to UST but is tethered to TRX. Similar to Terra Luna’s mechanism, USDD is an algorithmic stablecoin maintaining its dollar parity by burning TRX.

At the time of writing, the stablecoin is trading at $0.95, which is about 5% below its target price peg of $1. This comes when TRX’s price is also suffering from the crisis, as it is plummeting.

The altcoin is currently trading at $0.050, recording over 80% loss from its high of $0.09. This, however, may not absolutely be attributed to the Stablecoin de-pegging crisis cause the general cryptocurrency market is down at the moment. Bitcoin has fallen to $20,100 levels, with a market cap of $405 Billion.

Justin Sun Reassures Investors

Despite this, the founder of TRON, Justin Sun, is optimistic and believes the peg will be restored within the next 24 hours.

TRON DAO Deploys $2.5 Billion To Defend the Peg

The TRON DAO will deploy funds to safeguard TRX from the funding rate of shorting it on Binance, according to Justin Sun, founder of TRON and now Permanent Representative of Grenada to the World Trade Organization (WTO).

To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw 2.5 billion #TRX out of binance.

— TRON DAO Reserve (@trondaoreserve) June 15, 2022

Because of the financing rate, TRON DAO will be spending $2.5 billion to fight short positions on Binance, according to Justin Sun. He also stated that TRON DAO’s reserve had received 700 million USDC in injections to defend the USDD peg.

700 million USDC has been injected into @trondaoreserve for #USDD peg. Well done! https://t.co/r11PnBte4g

— H.E. Justin Sun 孙宇晨 (@justinsuntron) June 13, 2022

The TRON DAO Reserve intends to use the $2.5 billion to acquire large amounts of TRX. Thereby compelling individuals who are short TRX to buy back the underlying TRX tokens.

However, after all this strategy to bring the situation under control, the stablecoin is still trading below its $1 peg.

Investors Panic

Investors are already in panic mode as many are speculating that the same fate which Luna’s UST saw months ago will soon meet TRON’s USDD.

There’s been quite some commotion, especially after Justin Sun tweeted the same phrase as Do Kwon during the crisis.

Deploying more capital – steady lads

— H.E. Justin Sun 孙宇晨 (@justinsuntron) June 14, 2022

Many people are deliberating whether it was a touch of sarcasm or not.

Luckily, USDD has regained most of its peg, currently trading at $0.9789. It seems that, for now, USDD has avoided a catastrophic death spiral the likes of UST. At the time of writing, USDD investors are safe.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.

Follow us on Twitter @thevrsoldier to stay updated with the latest Crypto, NFT, and Metaverse news!

Image Source: ivanbabydov/123RF

Previous Post

Celsius CEO “Loses Voice” Two Days Before Halting All Withdrawals

Next Post

Firepin Token (FRPN) and Waves (WAVES) Can Help You Become a Millionaire

Related Posts

Market Analysis

Memecoin PEPE Set for Comeback in Bull Market

May 8, 2025
Solana On-Chain Metrics Signal Bearish Turn
News

Solana On-Chain Metrics Signal Bearish Turn

May 7, 2025
News

State Bitcoin Bills Collapse, NC Moves Ahead

May 6, 2025
Featured

Fartcoin Faces Risk as Momentum Slows Down

May 5, 2025
Solana Accumulation Phase: $100 Could Be It
News

Solana Accumulation Phase: $100 Could Be It

May 4, 2025
ripple
Featured

Ripple Lawyer Explains Legal Win

May 3, 2025

Press Releases

News

State Bitcoin Bills Collapse, NC Moves Ahead

by Jordan Avery
May 6, 2025

Introduction Florida’s once-ambitious attempt to weave Bitcoin into its treasury operations has ended with barely a ripple. The state's proposed...

Read more

Bitcoin After $97K: 3 Possible Paths

May 2, 2025
WLFI Raises $1B Backed by Trump What's Next

WLFI Raises $1B Backed by Trump What’s Next?

April 29, 2025

Bitcoin for $108K as Bulls Regain Control

April 28, 2025

TRUMP Bulls Eye $21 What’s Next?

April 26, 2025
The VR Soldier

© 2024 The VR Soldier

Navigate Site

  • About
  • Contact
  • Privacy Policy
  • Terms and Conditions

Follow Us

No Result
View All Result
  • Featured
  • News
  • Education
  • NEAR Protocol
  • Solana
  • Fantom
  • Yield Farming
  • Reviews
  • Press Releases

© 2024 The VR Soldier