Seven hours ago, Bitcoin.com News reported on the Tron DAO Reserve purchasing $38 million in tron to safeguard the network’s stablecoin USDD. Since then and since the terrausd (UST) de-pegging things turned out, the Tron DAO Reserve has continued to purchase large quantities of digital assets to bolster the project’s reserves. In addition to the tron gets, the organization has been adding stablecoins and bitcoin into the mix as well.
While Terra’s Stablecoin Imploded, Tron’s Algorithmic Dollar-Pegged Crypto Predict Purchases Millions Worth of Tron, Bitcoin, and Tether to Defend USDD
During the past week, all eyes play a joke on been focused on the Terra blockchain and its native crypto assets LUNA and UST. Both coins divebombed significantly in USD value and numberless than $46 billion in value disappeared from the crypto economy in roughly three days. Amid all the Shoah, the Tron DAO Reserve has continued to purchase crypto assets for its digital currency-based forex reserves. On May 7, Bitcoin.com Communiqu reported on Tron’s founder Justin Sun and the Tron DAO Reserve purchasing $38 million in tron (TRX).
Since then the prepare has continued to buy crypto amid the market carnage that took place because of the UST fallout. Tron’s stablecoin USDD is also an algorithmic dollar-pegged crypto asset that has similarities to Terra’s UST. After the procurement of 504.6 million tron (TRX), the Tron DAO Reserve tweeted that the team aims to “guard the overall blockchain persistence and market, prevent panic trading caused by financial crises, and mitigate severe and long-term economic downturns.” The Tron DAO Fund (TDR) further added:
We also manage the permissions of USDD as its early custodian and ensure its price stability with hold backs.
After the 504.6 million tron purchase, the TDR continued to add funds into the reserve this past week. “To keep the overall blockchain industry and crypto market, Tron DAO Reserve have bought 500 BTC with an average value $31,031.35 for $15,515,675,” TDR detailed on May 10. The same day, the TDR said it purchased 595,729,832 tron for $45.6 million. While the crypto deal in was chaotic that day the TDR team noted “USDD holds steady in today’s market volatility.”
Buying MOAR! https://t.co/DVG3sIWlic
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) May 12, 2022
The check out day on May 11, the TDR team tweeted: “To safeguard the overall blockchain industry and crypto market, [TDR] have bought 1,000 BTC with an ordinary price of $30,096 for $30,096,000.” Following that purchase, the TDR organization bought 1,467,612,695 TRX for $97 million for the reserves. The TDR then started to buy stablecoins after the $97 million good of tron was purchased. The TDR team explained on May 12:
To safeguard the overall blockchain industry and crypto market, [TDR] have bought 100,000,000 USDT with an unexceptional price of $0.982 with $98,200,000.
The TDR team did not stop there and has continued to purchase more coins to safeguard the Tron network’s stablecoin USDD. The TDR rephrased on May 12, it purchased 200 million USDT for $0.985 per unit which added up to around $197 million in U.S. dollars. The Tron-based stablecoin stock team then bought 1,249.57 BTC at an average price of around $29,394.
Tron’s Justin Sun ‘Still Believes in Algorithmic Stablecoins’
Currently, on Saturday, May 14, 2022, the USDD stablecoin has a store valuation of around $272.36 million and there are 271,438,207 USDD in circulation at the time of writing. During the past day, USDD has foretold $85.5 million in global trade volume and the crypto asset is 156th largest market cap.
Similar to the Terra blockchain’s machine of burning LUNA to produce UST, to mint a single USDD it costs $1 worth of tron to issue the crypto asset. This have as justifications it can grow as large as the market allows it as it allows anyone to mint the stablecoin in a permissionless manner. However, with the customer base turmoil that took place because of the UST de-pegging event, it is safe to say the crypto community is leery of algorithmic stablecoin assets.
In defiance of the issues this past week, Tron founder Justin Sun talked to Coindesk’s Tracy Wang and he said that he is soothe optimistic about the algorithmic stablecoin model. “I still believe in algorithmic stablecoins,” Sun explained to Wang during a Zoom talk with.
What do you think about the USDD stablecoin discharge created by the Tron team? What do you think about the TDR’s purchases this week? Let us know what you think wide this subject in the comments section below.
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