TRON DAO Reserve acquired 10m of TRON stable coin USDD to protect the blockchain and crypto industry.
Justin Sun and the TRON DAO Reserve have just announced that they have acquired 10 million USDD on TRON to protect the blockchain and cryptocurrency sector from potential harm. This comes as TRON’s stablecoin, USDD, continues to be unpegged from the US dollar.
— TRON DAO Reserve (@trondaoreserve) June 20, 2022
Tron’s stablecoin, USDD, was subjected to a turbulent change in market conditions a few days ago, which resulted in it being unpegged from the US Dollar. After the price was de-pegged, Tron DAO Reserve took action to attempt to bring it back up to its previous level.
It removed around 5.5 billion Tron (TRX) from exchanges in an effort to raise the USDD collateral and stop the stablecoin’s price from falling further. However, it would seem that none of TRON’s attempts have resulted in any fruit being produced as USDD remains depegged even at the time of this publication. USDD is worth $0.9601 according to data from Coinmarketcap.
More significantly, USD’s market value decreased by around 19 million dollars last week. The de-pegging of the stablecoin certainly had an effect, as seen by the fact that the market size decreased from $715 million on June 13 to $696 million at the present time.
The Tron Decentralized Autonomous Organization (DAO) has only recently increased its reserves to support the blockchain in the aftermath of the depegging of the stablecoin. The DAO added another 300 million USDC to its supply in the week before last.
It was a really intriguing development when USDD first appeared on the market in April of 2022. It is intended to function as a native stablecoin for the Tron blockchain, but one that is built algorithmically. As was the case most recently with UST, the success of algorithmic stablecoins is unpredictable. It would seem that the USDD is now a “miss” owing to the fact that its depeg from the value of $1 is still in progress.
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