Justin Sun Confirms Plans to Release Algorithmic Stablecoin USDD

The founder of Tron believes that Terra’s management allowed UST to be heavily leveraged, and does not intend to repeat this mistake when issuing his stablecoin USDD.

Former Tron CEO, Ambassador and Permanent Representative of Grenada to the WTO Justin Sun amid the fall of the UST stablecoin and negative trends in the cryptocurrency market declaredthat the situation did not affect his decision to issue the algorithmic stablecoin USDD:

“I still believe in algorithmic stablecoins. The crypto industry will evolve and algorithmic stablecoins should be there. We just need more complex and well planned structures. Thinking about things like leverage, growth and risk.”

Sun agrees that the UST and LUNA markets are in default. At the same time, I am sure that algorithmic stablecoins are safe. The head of Tron believes that LUNA was heavily dependent on loans, and its value increased to an “impressive market capitalization” very quickly:

“During the development of USDD, we focused on the healthy growth of the instrument. We want to keep its market value relatively small compared to TRX and overall market cap. At the same time, it should be less than Tron DAO reserves.”

At the beginning of May, TRON DAO Reserve launched the process of accumulating bitcoins and TRX to back USDD. The company replenished reserves with popular USDT, USDC and TUSD to reduce risks. The founder of Tron explained that the support of stablecoins will provide an opportunity to quickly provide the liquidity necessary for USDD stability in a falling crypto market:

“We have stablecoins that, if something bad happens, can be immediately deployed. This will help buy time, and then we can gradually liquidate other assets, if necessary. LUNA was growing too fast, they didn’t have time to set up a good reserve fund to stabilize the market.”

Recall that Justin Sun announced his intention to launch the USDD algorithmic stablecoin at the end of April.