USDD is trading at a discount to USDT, putting its peg in question once again. Justin Sun chips in.
The unfortunate tales of algorithmic stablecoins losing their pegs continue. This time, it’s TRON’s USDD that’s in the spotlight, trading at 2% below dollar parity.
Following the UST-Terra fiasco, another algorithmic stablecoin seems to be at risk of losing its peg.
The case in point is USDD which runs on TRON’s blockchain and is using a similar algorithm to UST, but it’s tied to TRX.
At the time of this writing, the cryptocurrency is trading at $0.98 – around 2% below its intended price.
Source: CoinMarketCap
This comes at a time when TRX’s price is also taking a beating. Right now, the altcoin trades for about a 6% daily loss, having recovered from a tumultuous morning session when it lost even more.
Despite all of the above, Justin Sun remains positive and anticipates the peg to be reestablished within the next 24 hours.
USDD/USDT sunIO 2pool have recovered back to 55/45 balance. I believe it will be back to 50/50 in 24 hours with 247% collateralization rate. You might see the fear here but I see 2% profit opportunity.
As CryptoPotato reported yesterday, TRON DAO’s reserve will be deploying $2 billion to protect the USDD peg.
Georgi Georgiev is CryptoPotato's editor-in-chief and seasoned writer with over four years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn
