Justin Sun Plans to Allocate $2B to Prevent USDD Collapse
Main page News, Stablecoins

Justin Sun, CEO of the Tron Foundation, believes the algorithmic stablecoin USDD, which was launched on the Tron network this month, could come under imminent attack.

In order to prevent the USDD from losing its parity with the US dollar, as has happened with Terra USD (UST), he has pledged to allocate $2 billion through TRON DAO Reserve.

UST and LUNA prices plummeted yesterday. According to CoinMarketCap, at the moment, the first asset is valued at $0.59, and the second at $0.040.

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Sun has highlighted the sharp increase in the cost of financing to open short TRX, acting as collateral for USDD. According to his estimates, in terms of annual return, the indicator has risen to 377.56%. Such figures reflect the rapid demand for the asset from bearish traders.

Sun expects the measures to prevent the asset price from declining.

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