Who Transferred 100,000,000 USDT To Binance And For What Purpose?
On June 7, an anonymous address transferred a huge amount of USDT to the Binance exchange. While community members began to panic, searching for the person behind this activity, the whale revealed himself and explained the nature of the transaction.
The person behind this transaction is Justin Sun, founder of Tron. The transaction amount will be used as collateral to support the USDD stablecoin that Tron recently launched. Justin announced to use $100 million to buy BTC and TRX on Binance, similar to LUNA and BTC in UST.
The plan calls for the sale and purchase of volatile assets to control the value of the USDD algorithmic stablecoin. To attract more buying volume from investors and traders, USDD offers high yields to anyone willing to provide them with liquidity.
Many people who do not know the situation are related to the event that the SEC is investigating Binance’s activities with BNB, and of course, this money is not to buy BNB on Binance after the news is confirmed.
After the Terra disaster, Sun faced criticism from investors across the crypto community, especially after it was announced that USDD would be backed by volatile assets in a similar way to UST.
The main problem with the concept of backing in BTC and TRX is the volatile nature of digital assets that can lose up to 50% of their value in days and even hours. To maintain balance and keep the USD peg, USDD should maintain a relatively low capitalization that the collateral that backs it can absorb.
At the time of writing, USDD’s capitalization stands at $703 million. With this number, the Tron Reserve DAO can be easily handled without major hitches. In the event that the capitalization exceeds $5 billion, the TRON Foundation will need to increase the collateral for the stablecoin to avoid following in the footsteps of UST and LUNA under Terra.
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 CoinCu Telegram to keep track of news: https://t.me/coincunews
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Harold
CoinCu News
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Who Transferred 100,000,000 USDT To Binance And For What Purpose?
On June 7, an anonymous address transferred a huge amount of USDT to the Binance exchange. While community members began to panic, searching for the person behind this activity, the whale revealed himself and explained the nature of the transaction.
The person behind this transaction is Justin Sun, founder of Tron. The transaction amount will be used as collateral to support the USDD stablecoin that Tron recently launched. Justin announced to use $100 million to buy BTC and TRX on Binance, similar to LUNA and BTC in UST.
The plan calls for the sale and purchase of volatile assets to control the value of the USDD algorithmic stablecoin. To attract more buying volume from investors and traders, USDD offers high yields to anyone willing to provide them with liquidity.
Many people who do not know the situation are related to the event that the SEC is investigating Binance’s activities with BNB, and of course, this money is not to buy BNB on Binance after the news is confirmed.
After the Terra disaster, Sun faced criticism from investors across the crypto community, especially after it was announced that USDD would be backed by volatile assets in a similar way to UST.
The main problem with the concept of backing in BTC and TRX is the volatile nature of digital assets that can lose up to 50% of their value in days and even hours. To maintain balance and keep the USD peg, USDD should maintain a relatively low capitalization that the collateral that backs it can absorb.
At the time of writing, USDD’s capitalization stands at $703 million. With this number, the Tron Reserve DAO can be easily handled without major hitches. In the event that the capitalization exceeds $5 billion, the TRON Foundation will need to increase the collateral for the stablecoin to avoid following in the footsteps of UST and LUNA under Terra.
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 CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
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