TRON’s recently unveiled USDD algorithmic stablecoin has already encountered difficulties. It was not long ago that the crypto market saw the demise of a crypto asset. This collapse was influenced by the UST algorithmic stablecoin of the Terra network, which fell short of parity with the US dollar.
The collapse of the UST stablecoin had a tremendous effect on the entire cryptocurrency market. It was reflected in the market prices of most cryptocurrencies.
TRON launches its own stablecoin
The TRON network took advantage of this opportunity by launching its native algorithmic stablecoin USDD. The market is in an intense negative phase. However, it has yet to fully recover from the disaster caused by the decoupling event of the UST stablecoin from the Terra network.
Under such circumstances, another stablecoin project has started to show signs of difficulty. This has caused anxiety and skepticism among the crypto community.
This followed a $0.97 drop in the USDD stablecoin price. So when the value of the stablecoin fell, the market saw that it was losing parity with the US dollar, and doubts grew about the newly established initiative.
Most have predicted that it will follow in the footsteps of the previously defunct Terra (LUNA) network. Various sources claim that around $1 million in USDD was exchanged for approximately 997,339 Tether (USDT) stablecoins.
Meanwhile, Nansen, a well-known blockchain analytics platform, discovered that one of the funds that capitalized during the decoupling of the UST stablecoin has been moving massive sums from the TORN network stablecoin USDD.
According to Nansen’s tweet, when defining USDD stablecoin collateralization, there are objections from researcher Resdegen seeking stablecoin support. Resdegen claims that USDD only has 92% of collateralized assets.
He went on to say that if TRON’s native asset, TRX, were not pegged, the collateral value of USDD would drop to 73%.
Harsh macroeconomic conditions caused the cryptocurrency market to plummet. The TRON DAO Reserve seems to be responding, recently announcing that it has acquired around 700 million USDC stablecoins.
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This post Deciphering the possibility of USDD falling further, how Tron DAO is set up to protect
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