TRON Invests Another $20 Million “To Safeguard The Cryptocurrency Market.”

The TRON DAO Reserve has added additional $10 million in USDD and $10 million in TRX to its reserves.

The TRON DAO Reserve issued a new update on Twitter on Friday, claiming it had purchased $10 million in USDD and added $10 million in TRX to its reserves “to safeguard the overall blockchain industry and crypto market.” In a tweet seconds later, Justin Sun, the blockchain’s founder and de facto leader, verified the upgrade.

TRON’s effort at an algorithmic stablecoin is USDD. It is modeled after Terra’s UST, which had a catastrophic collapse that resulted in an industry-wide wipeout when it lost its peg to the dollar in May.

Because the USDD is collateralized by the TRON DAO Reserve, it should not meet the same fate. According to the DAO’s website, the DAO owns $2.2 billion in TRX, BTC, USDT, and USDC collateral, with a total USDD supply of $723.3 million, making the stablecoin 316.2% overcollateralized.

Last month, the TRON DAO Reserve lost $2 billion as it fought off short traders betting against TRX in an attempt to maintain USDD’s dollar parity. USDD traded as low as $0.93 per dollar for a week before recovering to just under a dollar. Since the depeg, the TRON DAO Reserve has increased its USDD and TRX holdings on many occasions.

While TRON has made apparent efforts to gain traction this year with the launch of USDD, which it stated would provide users with “financial freedom,” this has not been enough to save it from the devastating meltdown that has inflicted losses across the market.

TRX is currently trading at just around $0.07, down more than 50% from its 2021 high of $0.16, according to Coincu data. Worse, TRX has yet to recoup its 2018 high, despite other Layer 1 assets rallying. It reached $0.23 at the tail end of the 2017 bull run, putting it almost 70% below its all-time high.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Patrick

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