• According to a YouTuber, Justin Sun is planning to dump USDD investors

  • As the USDD continues to trade below the $1 mark, investors are debating if there is any danger associated. Following the loss of the dollar peg on June 13, Justin Sun USDD fell to a low of $0.93 before reclaiming the $0.98 level.

    According to CoinMarketCap, the USDD is currently trading at $0.978, up 0.35 percent in the previous 24 hours. Before the depegging started on June 13, the stablecoin had a market cap of $723 million. After decreasing market size for a few days, the current market cap is $704 million, having previously dipped below $700.

    Are Trader Funds Risky?

    Although the USDD is marketed as a decentralized algorithmic stablecoin, many believe it is centralized. Unlike other stablecoins such as UST, minting the USDD is a private enterprise. Only a few whitelisted institutions are permitted to create fresh USDD by burning Tron’s TRX.

    Meanwhile, YouTube Coffeezilla hinted that the collateral assets are most likely placed in Justin Sun’s wallet.

    “It is unclear whether these assets will actually be deployed, and the BTC wallet they have is over 2 years old, suggesting this isn’t a new DAO wallet but possibly just a Justin Sun BTC wallet.”

    Who Is Minting USDD?

    He also asserts that Justin Sun appears to have minted 94 percent of the USDD. “The Tron founder’s probable address minted 683,320,461 USDD, accounting for 94% of all USDD ever produced,” he noted.

    “USDD appears like a honeypot for retail traders to get dumped on by Justin Sun himself,” the Youtuber claimed.

    The Tron DAO Reserve currently backs the total outstanding supply with a $2.31 billion portfolio of other cryptocurrencies. The reserve says that USDD is secured by the over-collateralization of several popular digital assets including as TRX, BTC, and USDT. With the collateral ratio set at 130 percent, the total value of collateralized assets is much greater than the value of USDD in circulation.

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