Breaking: Justin Sun’s USDD Stablecoin Depegs To $0.96, Tron (TRX) Dumped

Varinder Singh
December 12, 2022
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Justin Sun USDD Stablecoin Bitcoin Reserves

Justin Sun’s algorithmic stablecoin USDD depegs again and falls to $0.96. Tron blockchain’s native algorithmic stablecoin failed to repeg against the US dollar following the collapse of crypto exchange FTX. As a result, Tron (TRX) fell over 2% in an hour and 5% in the last 24 hours.

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USDD Algorithmic Stablecoin Falls To $0.96

Tron founder Justin Sun’s algorithmic stablecoin continues to depeg, with a fall to $0.96 on December 12. USDD stablecoin is falling against the US dollar in December and suddenly fell to $0.9673 today.

Over $4 million USDD liquidity was removed from Curve Finance a few hours ago, which counts over 12.83% of the total pool share. USDD/3CRV liquidity pool of Tron’s USDD on Curve has been severely tilted, with USDD accounting for 86.1%.

USDD Algorithmic Stablecoin

Etherscan data reveals Justin Sun transferred millions in TUSD in an effort to repeg USDD. The USDD stablecoin suddenly jumped from $0.970 to $0.976, but it still remains depeg. One transaction was revealed by Justin Sun in a tweet saying “Deploying more capital – steady lads.”

As a result of the USDD depegging, Tron (TRX) price also dumped over 2% in just a few hours. The TRX price is trading at $0.05236, down nearly 5% in the past 24 hours.

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USDD Depeg During FTX Crisis

During the FTX crisis, Tron blockchain USDD stablecoin depegged to $0.97. Justin Sun blamed Alameda for selling USDD to cover liquidity at FTX. However, on-chain data revealed that USDD algorithmic stablecoin selloff by whales caused the stablecoin to depeg.

Tron DAO Reserve manages supply and collateral for USDD algorithmic stablecoin. According to Tron DAO Reserve data, USDD total collateral backed by TRX, Bitcoin, stablecoins USDT and USDC has dropped to $1.45 billion. The collateral ratio has also dropped below 200 today.

Also Read: How Alameda-Genesis Relationship Risks DCG Bankruptcy?

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.