Crypto Comeback Pro Trading Robot

After TerraUSD, another Stablecoin Ends up Slipping

It has been over a month since the TerraUSD (UST) crash took place but its aftereffects are still lingering. If the UST mishap wasn’t enough for the entire cryptocurrency industry, another stablecoin has ended up facing a similar issue.

USDD Ends up Facing De-pegging

This time, it is USDD that has done nothing but inject more fear and market uncertainty among cryptocurrency investors. The report shows that on Monday, the price of USDD versus the USD went down to $0.97.

This is a huge upset for USDD given the fact that it is supposed to be pegged with the USD. As a result, it is expected that USDD’s price would fluctuate around $1.00 and $0.99.

Once again, due to the de-pegging, the cryptocurrency community has another major protocol to fear and keep an eye on.

The cryptocurrency investors are now fearing that they may get to witness yet another UST-like crash in the form of USDD. A bot named CurveSwaps that is responsible for detecting a change in the trading prices of assets was the one that noticed the change with USDD.

It reported that on Monday, 1 million USDD ended up getting exchanged for 997,339 USDT. Another platform on the blockchain system known as Nansen also noticed a similar kind of activity. Nansen also reported that the USDD amounts in large quantities were being transferred to other stablecoins.

Backing of USDD

With the given situation of USDD, many investors have started asking questions about the backing of the stablecoin. They want to know about the collateralization of USDD and many researchers are coming up with their own explanations.

According to Resdegen, one of the stablecoin researchers, the collateralization of USDD is only 92%. The researcher has estimated that if Tron (TRX) is removed, then the collateralization of USDD would come down to 73%.

Good News for the USDD Investors

Just when it seemed that USDD won’t be able to recover from this downtrend, Ton DAO reserve made a promising announcement. The protocol behind USDD, Tron DAO has announced that a huge amount of 700 million USDC has been received.

The officials at Tron DAO have confirmed that the amount received is for the defense of the pegging for USDD. With the help of the huge support, the collateralization of USDD has now increased all the way up to 300%.

This is a positive sign not only for USDD but also for TRX. This is because the investors of USDD would want not want USDD to lose its peg anymore. Therefore, they will continue supporting TRON to make sure it keeps supporting USDD in boosting its collateralization.

Previous Article
Next Article

Leave a Reply

Your email address will not be published.

Name Price24H (%)
Bitcoin (BTC)
$19,767.49
3.35%
Ethereum (ETH)
$1,105.86
4.02%
Tether (USDT)
$1.00
-0.05%
XRP (XRP)
$0.323500
3.08%
Litecoin (LTC)
$51.40
2.46%

Start Trading

Best VPN Deal Of The Year

VPN

Recent Comments

    Disclaimer

    This website may have financial affiliations with some (not all) of the brands and companies mentioned on this website. The content you are viewing may be sponsored content. Information found on this website does not represent opinions on whether to buy, sell, or hold any investment assets or sign up with any of the services mentioned. Any disputes you may have with brands or companies mentioned on our blog will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Investors must do their own research before investing their money and only do so at their own risk.

    Don't Miss Crypto Comeback Pro!

    #1 Cryptocurrency Price Prediction Software and Trading Robot
    Sign Up

    Try Crypto Engine With a Trusted Broker