TRON DAO Reserve announced on Twitter that it had purchased ten million dollars in TRON to protect the blockchain sector and cryptocurrency market as a whole. USDD is a Tron algorithmic stablecoin that uses an automatic balancing method to create 1 USDD by minting or burning $1 worth of TRX. Justin Sun, the founder of Tron, invested almost $2 billion earlier this week as traders appeared to be shorting TRX. Too short, or bet against, funding rates – or the interest paid by dealers to borrow funds for a trade – TRX futures reached a stunning 500 percent. The capital, according to Sun, was built to "combat them."

https://twitter.com/trondaoreserve/status/1538828916638490624

&nbsp;

Earlier this Tron DAO purchased Bitcoin and <a href="https://www.cryptoknowmics.com/news/trondao-to-initiate-a-3-billion-withdrawal-to-guard-trxs-value/" target="_blank" rel="noopener">TRX</a> worth $50 million to add to USDD's reserves. Last week, the Tron ecosystem suffered a massive setback when the USDD stablecoin lost its $1 peg. This caused traders to be concerned, as USDD was released last month as a competitor to Terra's UST, an algorithmic stablecoin. Another de-pegging of a similar asset resulted in TRX's price dropping for a short time.
<h2>The US Dollar Has Dropped to a New Low</h2>
The <a href="https://www.cryptoknowmics.com/news/fox-journalist-believes-tron-and-usdd-could-crash-like-luna-and-ust/" target="_blank" rel="noopener">USDD</a> plummeted to a fresh low of $0.93 on Sunday before reclaiming the $0.95 area. According to <a href="https://coinmarketcap.com/currencies/usdd/" target="_blank" rel="nofollow noopener">CoinMarketCap</a>, the stablecoin is currently trading at $0.95, down 0.70 percent in the previous 24 hours. More crucially, USDD has lost about $19 million in market capitalization in the last week. The stablecoin de-pegging had an impact, as the market cap dropped from $715 million on June 13 to $696 million today.
<h2>Reserves Have Increased Since the Dollar's De-Peg</h2>
Following the de-pegging of the stablecoin, the Tron DAO has increased its holdings to support the blockchain. The DAO boosted its USDC supply by 300 million last week. The Tron team claims that the over-collateralization of numerous prominent cryptocurrencies ensures the stability and security of USDD.

TRON DAO Reserve Buys 10,000,000 USSD to Safeguard Crypto Market

TRON DAO Reserve announced that it had purchased ten million dollars in TRON to protect the blockchain sector and cryptocurrency market as a whole.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

TRON DAO Reserve Buys 10,000,000 USSD to Safeguard Crypto Market

Top Picks