After the Terra UST fallout and the current crypto market volatility, many eyes have been focused on the Tron-based algorithmic stablecoin USDD. On June 13, the crypto asset tron (TRX) dropped significantly in value and Tron’s founder Justin Sun spoke about traders shorting the digital currency. Sun explained that the Tron DAO Reserve would deploy $2 billion to “fight them” and said he didn’t think the shorters could last 24 hours. Furthermore, the stablecoin USDD took a small dive on Monday, dropping to $0.977 per unit during the crypto market carnage.
Another Stablecoin Wobbles, While the Crypto Economy’s Value Drops Massively — Tron DAO Reserve Deploys USDC to Defend USDD Peg
On one of the blackest Mondays in the world of crypto assets, the stablecoin USDD fell to $0.97 per unit and the Tron DAO Reserve had to deploy funds to defend the $1 parity. “For the market extreme condition, [Tron DAO Reserve] has received 700 million USDC to defend [the] USDD peg. Now USDD collateralization rate is nearly 300%,” the organization tweeted.
While a quick dip to $0.97 isn’t the biggest deal to some investors, and USDD moved back to the $0.99 region, the same thing happened to UST the day before the massively larger de-peg. It is also being said that Tron’s native asset TRX is being heavily shorted by traders and Justin Sun explained that $2 billion would offset the shorters causing a short squeeze.
“Funding rate of shorting TRX on Binance is negative 500% APR,” Sun tweeted. “[Tron DAO Reserve] will deploy 2 billion USD to fight them. I don’t think they can last for even 24 hours. [A] short squeeze is coming,” he
