Amid the massive closing of TRX short positions and USDD decoupling, Tron management announced the launch of a plan to stabilize the price of the stablecoin.
Participants of the cryptocurrency market concernedthat the stablecoin Tron USDD may completely lose its peg to the US dollar in the very near future – amid cryptocurrency sales and market turmoil.
According to CoinMarketCap, on the evening of June 14, the stablecoin USDD traded at $0.98. During the day, the value of USDD fell to $0.97.
The TRON (TRX) token has also fallen in price by 25% over the past 12 hours and, according to data CoinGecko portal, is quoted at $0.058.
As with the collapsed Terra project, Tron initially offered USDD holders an annual “risk-free return” of 30%. Later this figure was reduced to 10.9%. As with Terra and LUNA, USDD can be exchanged for TRX, Tron’s native network token. Similar are the statements of the leaders of both projects that the algorithmic support model for the stablecoin is provided with excessive liquidity, protecting against the loss of the dollar peg.
Tron Cryptocurrency Project Founder Justin Sun Amid TRX Cryptocurrency Sale on Binance Cryptocurrency wrote
June 13 on Twitter that the negative trend will not last more than 24 hours, and he will direct the Tron DAO reserve in the amount of $ 2 billion to fight it.
June 14 Justin Sun informedthat the situation is gradually improving and he sees no reason to panic, and even predicts “the possibility of obtaining a 2% profit.”
Justin Sun has previously spoken out about the reasons behind the collapse of the Terra project and its algorithmic stablecoin UST, pledging to prevent a repeat of the situation in the case of his USDD. After the algorithmic stablecoin UST Terra crashed, wiping out $60 billion in investor funds in a week, Sun changed the USDD operating model to include Bitcoin (BTC), TRX, USDT and USDC reserves as collateral. USDD currently has a collateral ratio of 246.1% worth $1.77 billion.
Source: Bits

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