News

Justin Sun USDD Stablecoin Is Now Fully Backed by TRX

August 23, 2024 - Around 2 mins mins to read

Key Points:

  • The TRON DAO Reserve has removed 12,000 Bitcoin, worth about $728 million, from backing Justin Sun USDD stablecoin.
  • The shift has raised concerns about USDD’s decentralization and the influence of Tron’s founder.
The TRON DAO Reserve has withdrawn 12,000 Bitcoin, worth about $728 million, from the collateral backing Justin Sun USDD stablecoin.
Justin Sun USDD Stablecoin Is Now Fully Backed by TRX

Read more: Justin Sun Wallet Moves 16,236 ETH to HTX, Binance Gets 4,500 ETH!

TRON DAO Reserve Removes Bitcoin Collateral from Justin Sun USDD Stablecoin

The move leaves Justin Sun USDD, which was launched in 2022 and primarily supported by TRX, the native token of the Tron blockchain. It has added further debate around decentralization at USDD and the ability of Tron’s founder to exercise his will. Very little input from the community has been given despite it being governed by a DAO.

Sun came forward to respond to concerns, saying the earlier collateralization ratio of over 300% was inefficient and that this move of the reserve is targeted at streamlining the use of capital.

USDD Shift and TRX Value Surge Impact Market Dynamics

Industry observers have criticized the shift of USDD to depend on a more volatile asset like TRX. The independent stablecoin rating agency Bluechip has raised red flags about the issues of transparency and overdependence of this stablecoin on TRX.

The Justin Sun USDD stablecoin, rival to Terra’s UST, is now sitting at approximately $744 million in circulation, ranking it the seventh-largest stablecoin and within the top 100 cryptocurrencies by market cap.

TRX has doubled in a year and hit a market capitalization of 13.46 billion dollars. It is highly vulnerable to the extreme changes in TRX, and thus, with growing market capitalization, it does not deserve to be the primary backing for USDD.

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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Justin Sun USDD

Stablecoin

TRON

TRX

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UST

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Justin Sun USDD Stablecoin Is Now Fully Backed by TRX

Key Points:

  • The TRON DAO Reserve has removed 12,000 Bitcoin, worth about $728 million, from backing Justin Sun USDD stablecoin.
  • The shift has raised concerns about USDD’s decentralization and the influence of Tron’s founder.
The TRON DAO Reserve has withdrawn 12,000 Bitcoin, worth about $728 million, from the collateral backing Justin Sun USDD stablecoin.
Justin Sun USDD Stablecoin Is Now Fully Backed by TRX

Read more: Justin Sun Wallet Moves 16,236 ETH to HTX, Binance Gets 4,500 ETH!

TRON DAO Reserve Removes Bitcoin Collateral from Justin Sun USDD Stablecoin

The move leaves Justin Sun USDD, which was launched in 2022 and primarily supported by TRX, the native token of the Tron blockchain. It has added further debate around decentralization at USDD and the ability of Tron’s founder to exercise his will. Very little input from the community has been given despite it being governed by a DAO.

Sun came forward to respond to concerns, saying the earlier collateralization ratio of over 300% was inefficient and that this move of the reserve is targeted at streamlining the use of capital.

USDD Shift and TRX Value Surge Impact Market Dynamics

Industry observers have criticized the shift of USDD to depend on a more volatile asset like TRX. The independent stablecoin rating agency Bluechip has raised red flags about the issues of transparency and overdependence of this stablecoin on TRX.

The Justin Sun USDD stablecoin, rival to Terra’s UST, is now sitting at approximately $744 million in circulation, ranking it the seventh-largest stablecoin and within the top 100 cryptocurrencies by market cap.

TRX has doubled in a year and hit a market capitalization of 13.46 billion dollars. It is highly vulnerable to the extreme changes in TRX, and thus, with growing market capitalization, it does not deserve to be the primary backing for USDD.

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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