Tron founder Justin Sun announced a $2 billion reserve to defend TRX from increased short interest.
As the cryptocurrency slaughter worsens, many crypto leaders are announcing counter-strategies. Do Kwon, the founder of Terra, recently revealed plans to reinvigorate the UST stablecoin, but prices fell anyway.
Will the USDD follow in the footsteps of the UST?
The Tron network, like UST, debuted USDD a few days ago. According to Justin Sun, the TRON (TRX) coin could be the next target following LUNA. He stated that the funding rate of the TRX on the Binance cryptocurrency market has above 100% APR. The Tron Dao Reserve will spend $2 billion to fight the price action in order to avoid the dump.
During the ongoing drop, most stablecoins have displayed a slight deviation. Tether (USDT), USDC, and BUSD are among the most stable currency. In contrast, Terra’s stablecoin UST, which is tethered to the dollar, has dropped by 68 percent in the last 24 hours. The price of UST has dropped to $0.30.
Sun also stated that the USDD has stayed stable despite market turmoil. Tron’s stablecoin now has a total cap of $270 million, while Tron Dao Reserve has a cap of $10 billion. The USDD cryptocurrency is currently trading at $0.995 with a little deviation. He also stated that Tron’s funding rate on Binance is roughly -0.3448 percent, resulting in a -1.0344 percent, -377.556 percent APR.
TRX has joined the stablecoin club.
Tron previously stated that their stablecoin USDD is now available on BitTorrent Multichain Cross-chain interoperability. Users can now transfer USDD between BitTorrent, Ethereum, Fanton, and Avalanche chains. The networks also stated that USDD is improving and developing a strong alliance with five other TRON-based stalecoins.
At the time of writing, the TRON was trading at an average price of $0.070. TRX has dropped by more than 12% in the previous 24 hours. With a total market value of $6.9 billion, it is holding the fort.