After more than a week of trading under the dollar, the stablecoin of Tron has not yet regained parity with the greenback, despite the founder’s promises and the strengthening of its collateral.
Tron continues to try to rally the USDD
While all investors still have painful memories of the UST crash, the stablecoin Tron hasn’t been able to restore confidence for a week and is struggling to stay below the dollar.
To recall the different steps aimed at saving this stablecoin :
The TRON DAO Reserve responded to the initial depeg by deploying $2 billion to help restore its price on June 13, but that plan fell through after the USDD continued to dive.
On June 16, the reserve then announced a plan to withdraw 3 billion TRX tokens from a large number of cryptocurrency exchanges and anonymous DeFi applications “in order to protect the entire blockchain industry and the cryptocurrency market. Indeed, many traders wanted to take advantage of the fall in the TRX due to the loss of confidence in the USDD in order to sink the cryptocurrency and short it.
Eventually, the Reserve Tron DAO bought, on June 20, 10 million USDD with the same objective, but none of these actions succeeded in restoring parity.
Indeed, the stablecoin is around 0.9653 at the time of writing. Its lowest point was 0.9256 on June 19th.
The TRX meanwhile is trading around 0.06417, with a 7-day low of $0.0473 on June 15th.
For now, Justin Sun and his team continue to do their best to limit the problems and try to re-stabilize the USDD.
Binance will temporarily suspend TRX deposits and withdrawals
In this very complicated context for the TRX, Binance announced having to block all deposits and withdrawals on their Tron wallet in order to work on maintenance for an hour.
The altcoin will still be tradable on the platform during this time. This announcement obviously provoked quite a strong reaction on the internet, because the USDD is at the heart of all discussions.
The prolonged crash of this stablecoinand by default TRX, would be a second cataclysm for the crypto economy.
At the time of writing, Tron’s DAO reserve holds 10.8 billion TRX, over 14,000 bitcoins, over 140 million USDT and over 1 billion USDC.
If this reserve were to be liquidated, it would be a huge blow to the bear market. The stablecoins algorithmic are in the sights of many investors who are not ready to take the same risks as with the UST.
But Justin Sun shows us that it is important to remain as transparent as possible about his reservations, and those of his stablecoinin order to differentiate the different stablecoins algorithmic.
The USDD remains under the dollar, but if the TRON team continues its efforts and blocks the short attacks against its TRX, the USDD should stabilize again towards $1. However, anything is possible and the USDD could continue to suffer from the loss of confidence by investors and the too painful memory of the crash of the UST.
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Tron’s stablecoin USDD still hasn’t regained its dollar peg
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