Tron DAO Will Purchase 1 Billion USDT To Prevent Its Sell-Off
After Tether fell below its peg to the US dollar, the Tron DAO Reserve announced that it would buy 1 billion USDT to counter short sellers.
The balance of USDD, Tron’s own stablecoin, may be impacted, according to Tron DAO Reserve, and all reserves will be in centralized exchanges.
When investors betting on a decline are compelled to close their positions by purchasing the underlying token back, Tron DAO’s buying could result in a short squeeze. Similar strategies were used by Tron in June in response to the TerraUSD de-peg and the associated market turbulence.
The world’s largest stablecoin sell-off occurred today when Tether declined 1% from its peg to the dollar amid continuous market turbulence connected to crypto exchange behemoth FTX. Tether’s price at the time of writing was $0.998, according to information from CoinMarketCap.
Additionally, today saw the lowest level of stablecoin swap liquidity on the Curve 3pool since the luna collapse in May. Traders are still exchanging USDT for dai and USDC, two stablecoins, which caused USDT to lose parity with the dollar.
Paolo Ardoino, the CTO of Tether, earlier stated that the company had processed redemptions totaling $700 million the previous day and that he was optimistic about the situation.
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.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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Tron DAO Will Purchase 1 Billion USDT To Prevent Its Sell-Off
After Tether fell below its peg to the US dollar, the Tron DAO Reserve announced that it would buy 1 billion USDT to counter short sellers.
The balance of USDD, Tron’s own stablecoin, may be impacted, according to Tron DAO Reserve, and all reserves will be in centralized exchanges.
When investors betting on a decline are compelled to close their positions by purchasing the underlying token back, Tron DAO’s buying could result in a short squeeze. Similar strategies were used by Tron in June in response to the TerraUSD de-peg and the associated market turbulence.
The world’s largest stablecoin sell-off occurred today when Tether declined 1% from its peg to the dollar amid continuous market turbulence connected to crypto exchange behemoth FTX. Tether’s price at the time of writing was $0.998, according to information from CoinMarketCap.
Additionally, today saw the lowest level of stablecoin swap liquidity on the Curve 3pool since the luna collapse in May. Traders are still exchanging USDT for dai and USDC, two stablecoins, which caused USDT to lose parity with the dollar.
Paolo Ardoino, the CTO of Tether, earlier stated that the company had processed redemptions totaling $700 million the previous day and that he was optimistic about the situation.
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.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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