TRON DAO Struggles Continue, USDD Still Depegged
2022.06.20 20:06
TRON DAO Struggles Continue, USDD Still Depegged
- TRON’S USDD stablecoin is still de-pegged.
- The stablecoin currently hovers at $0.962.
- Meanwhile, TRON trades at $0.0611.
Despite TRON (TRX) having deployed efforts to peg its USDD stablecoin, it is still depegged below $1 over the past week. Today, TRON DAO Reserve tweeted that it has purchased 10 million USDD on TRON, to safeguard the crypto market and overall blockchain industry. But this has not made the stablecoin rise above $1.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve have purchased 10,000,000 #USDD on #TRON.
— TRON DAO Reserve (@trondaoreserve) June 20, 2022
Additionally, on June 15, TRON tweeted that it has withdrawn 301 million worth of TRX from Binance to safeguard the blockchain and crypto market.
Last week, TRON DAO Reserve deployed $2 billion to fight TRX short-sellers and restore the USDD peg. But this initiative resulted in no changes for USDD from its $1 price.
In detail, by deploying $2 billion, TRON plans to buy huge amounts of the coin and create a short squeeze. This will probably force those short on TRX to purchase back the underlying tokens and give arbitrageurs (profit-earning investors) more opportunities to restore the USDD peg.
The recently launched USDD stable coin of TRON has been struggling to surge. The situation became worse for the stablecoin as the global crypto market plunged again on June 13.
As the USDD de-pegging started, the price value of TRX also rallied down by more than 17%.
Significantly, if USDD trades below $1, arbitrageurs can burn it for $1 worth of TRX. Also, if the stable coin goes above $1, the arbitrageurs can exchange $1 worth of TRX and mint more USDD and thereby increasing its supply.
Moreover, TRX faces high selling pressure as arbitrageurs look for profit by swapping 1 USD for $1 TRX.
Currently, TRON trades at $0.0611, with a market cap of over $5 billion. The coin is slightly down by 2.04% in the past 24 hours. Over the past three days, TRX is indicating trendline support, which could be maintained if the coin moves higher now and in the coming days. Meanwhile, USDD is at $0.962, with a 0.4% spike.
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