$100M USDT Was Used To Buy BTC and TRX as a Reserve
- Justin Sun says the 100 million USDT was moved to acquire BTC and TRX as a reserve for USDD.
- TRX momentarily spiked up by 2% after the news.
- TRX momentarily spiked up by 2% after the news.
To maintain the USDD algorithmic stablecoin, the TRON DAO Reserve continues to purchase BTC and TRX. The TRON DAO Reserve moved USDT via Binance Exchange to purchase more BTC and TRX as a reserve for USDD, according to Justin Sun.
In order to maintain USDD’s value and decentralization, the TRON DAO Reserve pledges reserve funds to TRON’s ecological algorithm stable currency. After the transaction, TRX’s price momentarily rose by 2%, trading at $0.08097. The altcoin is valued at $0.08008 at the time of writing.
USDD is the first decentralized stablecoin to be over-collateralized, with a collateral ratio of 130%. The TRON DAO Reserve’s website publishes the USDD’s real-time collateral ratio, which is 200.88%
Every USDD is supported by at least $1.3 worth of $BTC, $TRX, #stablecoins, and potentially other highly liquid assets.
Data from the official USDD Twitter account
Since USDT, a stable currency produced by Terra, collapsed and other stablecoins like USDD are at risk, it’s not surprising that TRON is taking precautionary measures to ensure that its stablecoins don’t suffer the same fate.
TRON is one of the most significant blockchain platforms today. TRON’s Founder Justin Sun is notorious for his attention-seeking and marketing ploys in the crypto community. TRON’s native cryptocurrency, TRX, is the thirteenth largest cryptocurrency by market capitalization.
As Bitcoin and Ethereum continue to fall below crucial levels of $30k and $2k, the pressure on the market is mounting. Recently, the price of one bitcoin has fluctuated between $29,000 and $31,504. What would a $100 million investment do to the world’s largest cryptocurrency? How may it affect its value?
