Tron’s Stablecoin USDD Falls Below Its Dollar Peg

15.06.2022 09:20
by Gabriel Cross
1 min read

According to data from CoinMarketApp, Tron’s algorithmic stablecoin USDD has slipped below its dollar peg to $0.9764, following a market crash on Monday. This happened due to a large number of short sellers who have targeted TRX – Tron’s native token, on the crypto exchange Binance.

However, after the Tron Reserve DAO deployed $2 billion to fight the short sellers, USDD has risen to $0.999578. This was done in order to “short squeeze” the short sellers. A short squeeze means that traders were betting on the price to go down, but it went up instead, effectively forcing them to close their positions.

The Tron Reserve DAO announced additional measures meant to “safeguard the overall blockchain industry and crypto market.” Among the measures are two separate purchases of 100 million USDC. Following that, it made another purchase of 650 million USDC. This brings the total supply of USDC on Tron to $2.5 billion.

According to CoinMarketApp, TRX shrank by 16% on Monday, to $0.58, which was its two-month low. TRX’s current value is even lower and amounts to $0.05003.

Author

  • Gabriel Cross used to be a bank officer for an international bank for many years. From this point of view, he says the time spent obtaining a degree in economics was a waste of time. A few years back, he decided to quit his job and start trading. He is obsessed with decentralized finance, but he often plays with the stock market, investing with great pleasure into ground-breaking tech solution startups.

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