Tron 1 Breaking: Justin Sun Says He Will Spend $5B To Save Crypto Even as USDD Fights To Hold Peg

Breaking: Justin Sun Says He Will Spend $5B To Save Crypto Even as USDD Fights To Hold Peg

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– Justin Sun says he and the Tron protocol are “ready to serve” in response to a tweet from FTX CEO Sam Bankman-Fried about offering financial support to companies in the digital asset space that are struggling amid ongoing market volatility.

– Sun says he could spend up to $5 billion on acquisitions, according to a report from The Block, but as Trons algorithmic stablecoin USDD struggles to recover from a recent depegging, one analyst questions Suns resources.

– In mid-June, just months after its launch, USDD fell as low as $0.93 and has yet to recover to over $1.

– The Tron DAO withdrew 2 billion TRX, Trons native token, to protect the USDD peg on June 13. On June 17, the DAO withdrew an additional 3 billion TRX to defend the peg.

– TRX was intended to eventually be used to redeem USDD, similar to the relationship between LUNA and UST, but the latest version of the stablecoin white paper abandons any algorithmic stability mechanism in favor of an overcollateralized model relying entirely on arbitrage incentives on external markets.

– According to Trons website, its DAO has $2.3 billion in reserves if the protocol uses a significant amount of reserves to bail out other members of the industry, USDDs stability could be further threatened, Sortiriou said.

– Sun’s offer comes as Bankman-Fried continues to dish out cash to help struggling sectors of the crypto industry as the aftermath of the collapse of Three Arrows Capital and Celsius insolvency struggles.

 

 

Tron Breaking: Justin Sun Says He Will Spend $5B To Save Crypto Even as USDD Fights To Hold Peg
Breaking: Justin Sun Says He Will Spend $5B To Save Crypto Even as USDD Fights To Hold Peg 3

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