The Tron DAO has moved $100 million to Binance in a bid to buy bitcoins. This was revealed by the Tron founder, Justin Sun, in a Twitter post on June 7.
The post by Sun said;
“@trondaoreserve moved #USDT reserve to purchase more #BTC and #TRX as reserve.”
This is reminiscent of the LUNA Guard Foundation move to shore up support for the failed stablecoin, UST. This could be a move by the organization to make sure that there are enough funds to back up the new stablecoin of the Tron platform, USDD.
Avoiding Terra Mistakes
In a recent post by the Tron platform, it said that it has learnt from the errors of the Terra blockchain which resulted in the crash of the Terra USD stablecoin, UST.
A Twitter post by the whale monitoring platform, WhaleAlert, confirmed the transaction by the Tron DAO. The WhaleAlert post says,
“#USDT (100,000,000 USD) transferred from unknown wallet to #Binance”
In a recent YouTube video, the Tron founder said that USDD is now one of the most collateralized stablecoins. He said that the USDD is currently backed by other stablecoins and BTC. Sun maintained that the objective of the TronDAO Reserve is to raise the reserve to $10 billion in the next few weeks.
Sun said that the DAO will publish in coming weeks, the details of the reserve and how the Tron Foundation is using it to stabilize the USDD. He mentioned that the platform is moving incentives to standardize the processes employed in its stabilization of its stablecoin.
He said that the foundation also collaborates with several De-Fi projects and also holds some $660 million in ETH and TRX.
Buning of TRX
A recent update by Sun on June 7, shows that 421 million TRX was burnt today. The tracking from WhaleAlert states:
421,333,205 #TRX (33,898,912 USD) transferred from #Binance to unknown wallet.
Information available on the TDR website says that the collateral ration of USDD is 200.89%.