USDD was already perceived as a fragile currency. Nevertheless, it would seem that the prophecy turned out to be self-fulfilling.
Another Sharp Fall for Crypto
At the start of the week, the weather is not looking good for cryptocurrencies, which are still suffering a further drop in value following a plunge in capitalizations. As Bitcoin fell past $25,000, other digital currencies followed suit. Among them, the USDD was no exception to the rule.
The news comes as no big surprise to the crypto sphere, since TRON’s stablecoin was already considered a fragile asset that could disappear any moment. Generated in exactly the same way as the USTerra, Do Kwon’s cursed token, all the elements were in place for this to happen despite the recent collateralization of the USDD, precisely in order to avoid another disappearance.
A timely decision since the stablecoin has lost its parity with the dollar.
Journalist Valentin Demé, who intervened on BFM Crypto to warn the crypto sphere of the phenomenon, seems to have seen it right: the fall of the USDD is hurting the TRX. Carried away by the stablecoin, the latter lost no less than 16% of its value.
Nevertheless, the TRON team is not panicking. Indeed, its founder Justin Sun has announced to take matters into his own hands and inject nearly 700 million dollars in USDC into the TRON reserves to try to stem the phenomenon. Perhaps this is what allowed TRX and USDD to rally quickly and hold for the rest of the day, with the stablecoin priced around $0.99.
However, despite the calm and apparent control shown by Justin Sun and his team, the situation arouses suspicion among investors. Indeed, this one is only too reminiscent of the fall of the USTerra. The Do Kwon stablecoin had indeed simulated a small rise after its fall… before falling further.
The crypto sphere therefore keeps its eyes riveted on the course of the USDD while waiting to know if the token will suffer the same fate in turn. We only have to wait a few days to get the answer but also to know if the various initiatives taken by the TRON team to secure the coin will have borne fruit or not.
A tough start to the week for all stablecoins
With the cryptocurrency crash, investors could see that putting money into stablecoins could prove fatal despite seeming security. Since this morning, the USDD is not the only one to see its price drop since other stablecoins like the USDN are also in trouble. Similarly, the famous Tether has also stumbled slightly despite its reputation as a safe bet. But let the holders be reassured: the token rose immediately and is also maintaining itself around $0.99.
It therefore seems that after a short lull, the crypto sphere must once again hold its breath in anticipation of a possible new plunge into the abyss.
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USDD: TRON’s stablecoin loses its parity with the dollar – BeinCrypto International
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