Tron DAO Will Withdraw 3 Billion TRX From Exchanges Once More
As it supports the price of Decentralized USD, the stablecoin known by its ticker USDD, the Tron DAO Reserve will withdraw another 3 billion TRX (worth around $180 million) from crypto exchanges.
The Tron DAO Reserve stated in a tweet on Thursday that returning tron (TRX) tokens to its own control from unspecified centralized and decentralized exchanges will “safeguard the overall blockchain sector and crypto market.”
The Reserve’s decision to stifle TRX liquidity comes as USDD, an algorithmic stablecoin modeled after the now-defunct TerraUSD, trades for the fourth day in a row under a dollar. After plunging as low as $0.959 on Wednesday, the token is now trading at $0.975.
After this latest withdrawal, the DAO Reserve will have taken 5.5 billion TRX from exchanges in two days, accounting for approximately 6% of the total circulating supply. Although restricting liquidity in this way can limit the ability of short sellers to gamble against tron, withdrawing a token from exchanges is a highly rare step.
It also assures that the Tron DAO has a sufficient supply of tron to redeem USDD holders who wish to sell
When the USDD falls below its dollar peg, more tokens are generated to defend the peg, putting inflationary pressure on tron. The financing rate for shorting tron on Binance has exceeded 500 percent on Monday, indicating strong demand for the trade.
Tron was trading at around $0.06 at the time of writing, up 8,66% in the last 24 hours but still 25% below its price a week earlier.
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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Tron DAO Will Withdraw 3 Billion TRX From Exchanges Once More
As it supports the price of Decentralized USD, the stablecoin known by its ticker USDD, the Tron DAO Reserve will withdraw another 3 billion TRX (worth around $180 million) from crypto exchanges.
The Tron DAO Reserve stated in a tweet on Thursday that returning tron (TRX) tokens to its own control from unspecified centralized and decentralized exchanges will “safeguard the overall blockchain sector and crypto market.”
The Reserve’s decision to stifle TRX liquidity comes as USDD, an algorithmic stablecoin modeled after the now-defunct TerraUSD, trades for the fourth day in a row under a dollar. After plunging as low as $0.959 on Wednesday, the token is now trading at $0.975.
After this latest withdrawal, the DAO Reserve will have taken 5.5 billion TRX from exchanges in two days, accounting for approximately 6% of the total circulating supply. Although restricting liquidity in this way can limit the ability of short sellers to gamble against tron, withdrawing a token from exchanges is a highly rare step.
It also assures that the Tron DAO has a sufficient supply of tron to redeem USDD holders who wish to sell
When the USDD falls below its dollar peg, more tokens are generated to defend the peg, putting inflationary pressure on tron. The financing rate for shorting tron on Binance has exceeded 500 percent on Monday, indicating strong demand for the trade.
Tron was trading at around $0.06 at the time of writing, up 8,66% in the last 24 hours but still 25% below its price a week earlier.
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
Annie
CoinCu News
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