In the last 24 hours, the price of TRON (TRX) has dropped by almost 16% after doing well at the start of the latest slump. The CEO of TRON, Justin Sun, wants to spend more than $2 billion to protect and build support.
Tron spent $700 million to fix the USDD stablecoin and keep redemptions going after it lost its peg for a short time.
700 million USDC have been given to TRON DAO.
Justin Sun said in a tweet that shorting TRX coin on Binance, the largest cryptocurrency trading platform in the world, has a funding rate of almost 500% ARP. The money that was revealed will help them in their fight. He also said that this situation would only last for 24 hours.
The TRON DAO said they had gotten 700 million USDC to help them deal with the problem. This amount will be used to protect the USDD peg. It also said that the collateralization rate is higher than 300 percent. Another update says that DAO has given Binance 100 million USDC so that it can buy more TRX.
Will the USDD do what the TerraUSD did?
Mikko Ohtamaa, co-founder of Trading Protocol, said that the equivalent de-peg protection for Terra’s UST did not work out.
The value of TRON’s stablecoin USDD, which has been around for a month, has moved away from its dollar value. In the last 24 hours, it has lost about 2% of its value and is now worth $0.982. Even though the market has been very unstable, the USD has gone up. On the other hand, TerraClassicUSD’s collapse has left a big hole in the cryptocurrency market. The USD has been used by more than 723 million people on the market.
Sun had said before that its reserve is buying more bitcoin aggressively because the market is so unstable right now. When the market calms down, he will talk about the reserve in public. TRON DAO just bought Bitcoin and TRK worth $50 million for the reserve.
At the time this was written, the average price of TRX was $0.0641. Over the past week, the price of Tron has gone down by 26%. The total value locked (TVL) of TRON has dropped by more than 25% in the last 24 hours. It is still the third largest chain, with a TVL of $4.35 billion.
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