- Crypto investigator Coffeezilla released a video about how Justin Sun’s USDD is on a path of colossal crash, like Terra’s UST.
- The detective argues that Tron DAO could fail to deploy its Bitcoin holdings to safeguard USDD from de-pegging.
- USDD price remains below the peg and at press time is trading at $0.98.
Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash.
Tron’s USDD loses $1 peg
Tron’s stablecoin USDD has struggled to maintain its $1 peg, dropping two cents to trade at $0.98. USDD was launched in May 2022, around the time of Terra’s UST implosion and Justin Sun, founder of Tron affirmed that special measures had been taken to avoid a similar fate as TerraUSD.
Sun commented on the colossal crash of TerraUSD (UST) and assured the Tron community that the stablecoin USDD is over-collateralized and that the Tron DAO Reserve would take all the necessary steps to fight a de-peg. Despite Sun’s assurance, there has been speculation of USDD following UST down the path to a de-peg, as the stablecoin struggles to recover to $1 level.
At the time of writing, USDD price is $0.98 after a drop from $0.99 on June 27, 2022. The Tron DAO Reserve has spent over $2 billion in Bitcoin, USD Coin (USDC) and Tron (TRX) to build its reserve. The DAO then spent $10 million to buy USDD and TRX.
Experts have estimated that defending USDD’s peg could emerge as an expensive affair for Tron DAO Reserve.
Crypto detective investigated USDD and found this
A self-proclaimed internet detective, Coffeezilla has investigated Justin Sun’s new stablecoin USDD. The expert believes it is on its path to suffering a de-peg and becoming the next UST. In a recent YouTube video, Coffeezilla said that USDD, with a market capitalization of $723 million, is far from being a decentralized algorithmic stablecoin.
I investigated Justin Sun's new stablecoin USDD, which is trying to be the next #LUNA and already has a $723M market cap.
Here's what I found out
(NEW VIDEO IS ON YOUTUBE)— Coffeezilla (@coffeebreak_YT) June 24, 2022