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.

Tron DAO Will Withdraw 3 Billion TRX From Exchanges Once More

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

Tron DAO Will Withdraw 3 Billion TRX From Exchanges Once More

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.

Source: CoinCu

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

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

1 hour ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

3 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

3 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

3 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

5 hours ago

This website uses cookies.