Justin Sun’s algorithmic stablecoin USDD is pegged again and drops to $0.96. The Tron blockchain’s native algorithmic stablecoin failed to rebound against the US dollar following the collapse of crypto exchange FTX. As a result, Tron (TRX) fell more than 2% in an hour and 5% in the last 24 hours.
USDD Algorithmic Stablecoin drops to $0.96
The algorithmic stablecoin owned by Tron founder Justin Sun continues to fall, falling to $0.96 on December 12. USDD stablecoin is falling against the US dollar in December and suddenly dropped to $0.9673 today.
Over $4 million USDD liquidity was removed Curve Finance a hours ago, which is more than 12.83% of the total pool share. USDD/3CRV liquidity pool of Tron’s USDD on Curve is heavily tilted, with USDD accounting for 860.1%.
Etherscan data shows that Justin Sun transferred millions in TUSD in an attempt to re-link USDD. The USDD stablecoin suddenly jumped from $0.970 to $0.976, but it still remains depeg. A transaction was revealed by Justin Sun in a tweet saying “Put more capital – solid guys.”
Due to the depegging of the USDD, the price of Tron (TRX) also dropped more than 2% in just a few hours. The TRX price is trading at $0.05236, down almost 5% in the last 24 hours.
USDD Depeg during FTX crisis
During the FTX crisis, Tron blockchain USDD stablecoin devalued to $0.97. Justin Sun blamed Alameda for selling USDD to cover liquidity at FTX. However, on-chain data revealed that the algorithmic sell-off of stablecoins in USDD by whales caused the stablecoin to depeg.
Tron DAO Reserve manages the supply and collateral for USDD algorithmic stablecoin. According to Tron DAO Reserve data, USDD total collateral backed by TRX, Bitcoin, stablecoins USDT and USDC has fallen to $1.45 billion. The collateral ratio has also fallen 200 today.
Also Read: How Alameda-Genesis Relationship Risks DCG Bankruptcy?
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This post Justin Sun’s USDD Stablecoin Depegs to $0.96, Tron (TRX) Dumped
was published first on https://coingape.com/breaking-justin-suns-usdd-stablecoin-depegs-to-0-96-tron-trx-dumped/