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After the US-pegged stablecoin dropped to $0.9807 this morning at 7:52 UTC, USDD is facing its most difficult test so far. At the time of publication, the U.S. dollar-denominated Canadian dollar had rebounded marginally, but was still one cent shy of the dollar, trading at $0.9902.
In the last twenty-four hours, Bitcoin (BTC) has decreased 13.5% to $23,763.55, while Ethereum (ETC) has declined 18.0% to $1,197.16.
Monday’s crypto market remained anxious after the announcement by the loan platform Celsius that it would stop all client withdrawals. The announcement has contributed to the market’s underlying pessimism after the May collapse of Terra.
The decoupling of USD from the dollar has only contributed to the rising level of panic in the crypto market. In response, Justin Sun, the CEO of Tron, revealed that the Tron DAO, which administers USDD, is “actively purchasing crypto… Once the market is steady, we will include reserve in the public speech. In addition, the #USD return rate will be updated daily.”
In the previous hour, Sun and TronDAO announced the acquisition of an additional 650 million USDC, bringing their total USDC purchase to $2.5 billion.
At launch, the CEO of TRON, Justin Sun, pledged to over-collateralize USDD to the tune of $10 billion. Total TRON holdings in all currencies fall short of this target.
Not only has the CEO of TRON praised collateral as a layer of security, but he has also praised other defensive measures. Sun further guaranteed that the “appropriate algorithms” used by Tron would ensure the peg remained steady “regardless of market volatility.” Today, these techniques have been put to the test and have shown to be inadequate.
Also Read: SkyBridge Capital purchased the crypto plunge and advised investors to stay disciplined
