Breaking: Justin Sun’s USDD Stablecoin Depegs To $0.96, Tron (TRX) Dumped
Justin Sun’s algorithmic stablecoin USDD depegs again and falls to $0.96. Tron blockchain’s native algorithmic stablecoin failed to repeg against the US dollar following the collapse of crypto exchange FTX. As a result, Tron (TRX) fell over 2% in an hour and 5% in the last 24 hours.
USDD Algorithmic Stablecoin Falls To $0.96
Tron founder Justin Sun’s algorithmic stablecoin continues to depeg, with a fall to $0.96 on December 12. USDD stablecoin is falling against the US dollar in December and suddenly fell to $0.9673 today.
Over $4 million USDD liquidity was removed from Curve Finance a few hours ago, which counts over 12.83% of the total pool share. USDD/3CRV liquidity pool of Tron’s USDD on Curve has been severely tilted, with USDD accounting for 86.1%.
Etherscan data reveals Justin Sun transferred millions in TUSD in an effort to repeg USDD. The USDD stablecoin suddenly jumped from $0.970 to $0.976, but it still remains depeg. One transaction was revealed by Justin Sun in a tweet saying “Deploying more capital – steady lads.”
As a result of the USDD depegging, Tron (TRX) price also dumped over 2% in just a few hours. The TRX price is trading at $0.05236, down nearly 5% in the past 24 hours.
USDD Depeg During FTX Crisis
During the FTX crisis, Tron blockchain USDD stablecoin depegged to $0.97. Justin Sun blamed Alameda for selling USDD to cover liquidity at FTX. However, on-chain data revealed that USDD algorithmic stablecoin selloff by whales caused the stablecoin to depeg.
Tron DAO Reserve manages 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 dropped to $1.45 billion. The collateral ratio has also dropped below 200 today.
Also Read: How Alameda-Genesis Relationship Risks DCG Bankruptcy?
The post Breaking: Justin Sun’s USDD Stablecoin Depegs To $0.96, Tron (TRX) Dumped appeared first on CoinGape.