Decoding the Possibility of USDD Dropping More, How Tron DAO Is Set To Protect
TRON’s freshly introduced USDD algorithmic stablecoin has already encountered difficulties. It wasn’t long ago that the crypto market saw the demise of a crypto asset. This crash was influenced by Terra network’s algorithmic stablecoin UST, which failed equality with the US dollar.
The UST stablecoin collapse caused a tremendous effect throughout the crypto market. It was mirrored in the market prices of the majority of cryptocurrencies.
TRON Launches Its Own Stablecoin
TRON network took advantage of this chance by launching its native algorithmic stablecoin USDD. The market is in an intense negative phase. Yet it has to fully recover from the disaster triggered by the de-peg event of Terra network UST stablecoin.
Under such circumstances, another stablecoin project has begun to exhibit symptoms of difficulty. This has caused anxiety and skepticism among the crypto community.
This followed a $0.97 reduction in the price of the USDD stablecoin. So when stablecoin fell in value, the market saw it as dropping equality with the US dollar, and doubt about the newly established initiative grew.
Most have predicted that it will follow in the footsteps of the previously defunct Terra (LUNA) network. Several sources claim that around $1 million in USDD was exchanged for approximately 997,339 Tether (USDT) stablecoins.
Meanwhile, Nansen, a renowned blockchain analytics platform, discovered that one of the funds that were capitalized during the de-pegging of UST stablecoin has been moving massive sums of TRON network’s USDD stablecoin.
According to Nansen’s tweet, while defining the collateralization of USDD stablecoin, there are objections from researcher Resdegen who is seeking stablecoin’s support. Resdegen claims that USDD only has 92% of collateralized assets.
He went on to say that if TRON’s native assets TRX were not pegged, the collateralization worth of USDD would fall to 73%.
The harsh macroeconomic conditions caused the crypto market to plummet. The TRON DAO Reserve appears to be responding, recently announced that it has acquired about 700 million USDC stablecoin.