Same but different; Tron’s USDD not like Terra’s UST?

Sahana Kiran
Tron's USDD
Source – Unsplash

The trauma caused by the downfall of the entire Terra ecosystem continues to linger across the crypto corridors. While the entire community did not want anything to do with algorithmic stablecoin, Tron’s USDD managed to survive so far. Justin Sun’s bold move of pouring funds into it shocked many, however, the de-pegging of USDD brought back bad memories for many.

The invasion of the bears has been pushing several cryptocurrencies to their lows. Unfortunately, the stable ground in the crypto-verse was also a bit shaky. Tron’s USDD has been de-pegging from the $1 zone for a while now. Earlier today, the asset reached a low of $0.925. This undoubtedly instilled fear in the market. However, most of them in the community were seen urging individuals to refrain from shorting the Tron’s USDD as well as its native crypto, TRX.

This move can be speculated to be fueled by the infamous downfall of UST. But a Twitter user, FatMan a notable Terra whistleblower took to Twitter and urged the community to be patient.

Tron’s USDD has been time and again compared to Terra’s UST. Therefore, FatMan cleared the air and suggested that USDD was nothing like UST. While he revealed that Sun himself shared his plans with him, details about it were still under the wraps. He tweeted,

“He told me his plan in private, I don’t really want to post any details; just don’t short it – some in the group are considering it – it won’t end well. It’s not going to death spiral any time soon.”

While some continue to suggest that the network has enough funds to maintain the peg of USDD, a few others have been pointing out the existing funds in the reserve. TronDAO Reserve continued deploying millions, but Tron’s USDD is still depegged.

Earlier today, the Tron DAO Reserve went on to purchase 10,000,000 USDD.

Tron’s stablecoin market cap soars as USDD remains depegged

As the community cribs over the de-pegging for Tron’s USDD, Tron DAO revealed that the total market cap of the network’s stablecoins was on the rise. The total market cap of Tron’s stablecoin, at press time, was $35.83 billion. This further secured the network a spot right below Ethereum.

Additionally, at press time, USDD was still depegged as it was priced at $0.9611. TRX, on the other hand, was trading for $0.06096.