The Tron DAO Reserve announced that it moved $120 million in USDC to Binance. The recent move came after USDD, the Tron network’s stablecon lost its peg to the USD. In a Twitter post on June 15, the Tron founder, Justin Sun shared a post from the organization. The update says,
“To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have transferred 120 million more #USDC on TRON to binance to purchase #TRX. ”
USDD Lost Dollar Peg
The Tron stablecoin, USDD is another algorithmic stablecoin that has lost its peg to the dollar. It is currently trading at $0.9734, a 0.8% drop from its dollar peg.
USDD first lost its dollar peg at 3 PM on May 11. The market maker re-stabilized the currency on May 13, at 5 PM. The second loss of the USDD dollar peg happened at 11 PM on June 12. At the time of filing this report, the USDD is still unpegged to the USD. This is the third day of depeg.
Getting Their Acts Together
Reacting to the update by the Tron DAO Reserve, a Twitter user, Mano @manobtc highlighted that if the USDD is unpegged to the USD for a long period, it would cause investors to lose confidence in the stablecoin.
“The longer the depeg the less convinced people are. Get your …. together”
In the meantime, a recent update from @USDD says that the stablecoin is sufficiently backed by collateral up to 316% ratio.
It says that the $723 million USDD is backed by assets worth $2.29 billion.
Investors in the stablecoin have questions that they are demanding answers for. A user, @Yannyx asked:
“Why USDD price is 0,98 USD and not 1,00 USD ? Please answer this most obvious question. Don’t let people answer that by themself – that creates more FUD.”
Lessons from Terra USD
Another user, @yngtrdr956 said that USDD is a gamble. They maintained that it is a better idea to stick with USDC that doesn’t need backing. Xfreecoin thinks that USDD is in the danger of collapsing if the Tron team isn’t careful.
Tron founder, in a recent update, said that the USDD learnt lessons from the collapse of the Terra stablecoin, UST.