TRON and its new stablecoin could disappear according to an expert – BeinCrypto International

Would TRON and USDD be next on the list of missing tokens? Certain indicators should give the flea in the ear.

A copy-paste under disastrous omens

Until now, TRON has weathered the cryptocurrency crisis very well. Despite falling in February 2022, TRX continued its ascent and its price literally exploded at the start of the week. Driven by its sudden rise of 45%, the token has delusions of grandeur. At the beginning of May, the TRON blockchain announced the release of its own stablecoin called USDD. Nevertheless, it could be that this decision is a big mistake and that the new part does not last over time.

Source: USDD Twitter account

According to journalist Valentin Demé, the stablecoin is even heading in the wrong direction. During an intervention for BFM Crypto, he did not hesitate to compare the USDD to the unfortunate Terra which completely disappeared from the blockchain until the implementation of its second version.

I’m going to paraphrase one of those well-known geniuses, who is Albert Einstein: madness is behaving the same way and expecting a different result.

Excerpt from Valentin Demé’s speech

Indeed, despite the success of the TRON blockchain which, with its stablecoin, has become the third DeFi blockchain, it would seem that USDD is not as stable as claimed since it is extremely similar to LUNA. For Valentin Demé, this is not a guarantee of success and the piece could disappear at the slightest event.

USDD is an algorithmic stablecoin that works a little bit the same way, if not totally the same way, as the UST which collapsed a few weeks ago with its 20 billion capitalization. So TRON is betting on the same system: an algorithmic stablecoin which is managed a little in the same way as the UST and which generates 23% annual interest. Currently if we put it in the TRON protocol, which again drains 50% of the capital of the blockchain, which is therefore the 3rd in decentralized finance, that’s a lot of similar elements with what we knew before the collapse of the UST. For the moment, if we remove the interest boosted by TRON, we would only have 3% interest but we prefer to boost to 23% so that people retain their USDD. […] It’s pretty much the same as with the UST and we know the end of the story so it’s not necessarily going to be the best thing.

Excerpt from Valentin Demé’s speech

Source: BFM Crypto

Mistrust remains

However, will the TRON stablecoin meet the same fate as Terra? The indicators seem to invalidate it as the blockchain is doing well at the moment. While briefly fixing at the promised dollar, the price of the USDD varies like the other stablecoins. It is however maintaining itself in a very honorable way although a constant decline is already being seen.

Source : CoinMarketCap

Nevertheless, everything remains possible and in the event of a rebound from the crisis, the USDD could well fall out of favor in turn, taking the TRON blockchain with it. It is therefore recommended to invest in this new token with the utmost caution and only invest savings that you can part with.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.



We wish to thank the writer of this article for this incredible content

TRON and its new stablecoin could disappear according to an expert – BeinCrypto International


Check out our social media profiles , as well as other related pageshttps://metfabtech.com/related-pages/