Tron (TRX) deploys USDC to defend algo stablecoin USDD’s peg
07:40, 14 June 2022
The founder of Tron (TRX) has vowed to defend the under-fire decentralized algorithmic stablecoin USDD just weeks after the collapse of the terra blockchain and its similar token UST.
USDD slipped its dollar peg in Monday trading yesterday, trading as low as 91 US cents, with founder Justin Sun claiming short sellers were targeting the digital token. TRX to USD.
TRX to US dollar
Sun said the Tron DAO Reserve (decentralized autonomous organization) would deploy $2bn in USDC reserves in bid to maintain USSD-dollar parity..
Then the Tron DAO Reserve tweeted it had bought 700m USDC and then another two separate tranches of 100.
At the time of writing USDD was trading just shy of 98 US cents, according to CoinMarketCap.
TRX itself is also feeling the heat, the Tron price is down 4.1% over the previous 24 hours versus a 7% and 3% rise for BTC and ETH respectively.
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USDC to US dollar
The fourteenth largest crypto by market capitalization is down over 22% on the week, though there has been little good news for the crypto market in general over the previous seven days.
After the collapse of algorithmic stablecoin UST in recent weeks USDD has been the second largest token of its type by market capitalization, according to data from CoinMarketCap.
The largest algorithmic stablecoin Neutrino USD is also adrift from its dollar peg and is now trading at 96 US cents.
The stablecoins’ travails came on a bad day for the crypto sector, as lending platform Celcius suspended withdrawals, causing prices to plummet.
According to Capital.com data, at one point bitcoin (BTC) was down more than 15%, hovering in the $23,000 range during – its lowest point since December 2020.
BTC to USD
ETH), and Binance (BNB) also tumbled, falling more than 17% and 14%, respectively, in Monday afternoon trading.
Aave was among the hardest hit crypto assets as its price fell roughly about 20% to the $60 range on Monday.
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