Fox Journalist Believes TRON and USDD Could Crash Like Luna and UST
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Investors Keeping Close Eyes on LUNA and UST
In a tweet, Eleanor Terrett noted that crypto investors are currently keeping ‘close eyes’ on TRON and USDD especially considering what happened to Terra Luna and UST a few weeks ago.
UST de-pegged and went on a freefall, taking Luna with it. The two are yet to recover and may never recover to their previous values. Terrett pointed out that USDD recently de-pegged from the USD, dipping as low as $0.94 while the TRX has dropped over 20% in the past seven days.
One investor told the journalist that a crazy 40% plus annual yields protocol is always going to be unstable. Concerning this, she noted:
“One investor tells me: Who thought that backing assets with other volatile assets and calling them stablecoins was a good idea? Basic economics principles left at the door, supplemented by crazy 40%+ yields promised that are always going to be unsustainable.”
Could TRON Have The Same Fate As Terra?
While the team behind Terra invested billions to stop the UST depeg, today both LUNA and UST are dead with investors losing billions. As a result, Terra founder Do Kwon and Terra labs are facing Lawsuits in South Korea and the U.S.
Meanwhile, Tron and Tron DAO Reserve have been injecting billions of dollars of collateral into the market as they try to maintain the USDD peg. Around $2 billion and over 5 billion TRX have already been deployed for this purpose. However, USDD is still de-pegged.