Tron Founder Justin Sun said he will deploy a $2 billion reserve to protect TRX against heightened short interest.
As the Cryptocurrency bloodbath intensifies many crypto leaders are announcing plans and strategies to counter it. Terra founder Do Kwon recently announced plans to revitalize the UST stablecoin, but prices crashed regardless.
Will USDD mirror UST’s downfall?
A few days back the Tron network launched USDD just like UST. Justin Sun cited that TRON (TRX) token can be the next target after LUNA. He mentioned that the funding rate of shoring TRX on the Binance crypto exchange has crossed 100% APR. In order to avoid the dump, the Tron Dao Reserve will be deploying $2 billion to fight the price action.
Most of the stablecoin has shown a little deflection amid the ongoing dump. Stable coins like tether (USDT), USDC and BUSD are standing strong. On the other hand, Terra’s stablecoin UST which is pegged by the dollar has seen a massive drop of 68% in the last 24 hours. UST’s price has come down to trade on $0.30.
Sun added that USDD has remained stable during market volatility. The current total cap of Tron’s stablecoin stands at $270 million while Tron Dao Reserve stands at $10 billion strong. The USDD token is trading at the price of $0.995 with a minor deflection. He further mentioned that Tron’s funding rate on Binance is around -0.3448% which makes it -1.0344%, -377.556% APR.
TRX joins the stablecoin party
Earlier, the Tron announced that their stablecoin USDD is now live on Multichain Cross-chain interoperability BitTorrent. Now users can bridge USDD among BitTorrent, Ethereum, Fanton and Avalanche chains. The networks also assured that USDD is taking a better shape and forming a strong alliance with 5 other TRON based stalecoins.
The TRON is trading at an average price of $0.070, at the press time. TRX is down by over 12% in the last 24 hours. It is holding the fort with a total market capitalization of $6.9 billion.
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