TronDAO to Initiate a 3 Billion Withdrawal to Guard TRX's Value

Guarding Against The Crypto Winter
USD is Still Depreciated

TronDAO has declared that it will remove 3 billion TRX from a CeFi and DeFi lending platform. It did not disclose the systems through which these withdrawals will be made. The foundation described the decision as an effort "to defend the overall blockchain sector and crypto market" in a tweet announcing the upcoming withdrawals. It previously made a similar statement alongside an announcement to make withdrawals from Binance.

Guarding Against The Crypto Winter

The impending withdrawal follows a continued streak of TRX withdrawals by the DAO. Upon completion, it would take the whole leaves to 5 billion TRX in just two days. On Wednesday, the foundation announced it withdrew 2 billion TRX from Binance.

Analysts tagged the withdrawals a calculated move to prevent a similar occurrence of Terra's UST collapse in May. The leaves will shrink liquidity for short traders and avoid a sharp decline in TRX's value. Along with the withdrawals, Justin Sun, Tron's founder, has been attempting to calm fears of the community collapsing. However, USDD and TRX continue to underperform as the crypto winter drags on.

USD is Still Depreciated

Tron's algorithmic stablecoin USDD has yet to achieve parity with the US dollar for the fourth day. It is currently trading at $0.97, according to CoinGecko data. Despite allegations that it is over-collateralized, the USDD's inability to peg back has fueled market speculation.

On the other hand, Justin Sun has guaranteed the community that Tron DAO will continue to infuse cash into the stablecoin to keep it overcollateralized. TRX, on the other hand, had a good day today after reaching a high of $0.064 but has since fallen. The coin price is currently $0.060, up 2.3 percent in the last 24 hours.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

TRX DeFi USDD TronDAO

TronDAO to Initiate a 3 Billion Withdrawal to Guard TRX's Value

Usha Yadav

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.