504,600,250 TRX Worth $38M Purchased by TRON DAO Reserve

Justin Sun Backs Over Collaterization of TRON USDD Stablecoin
  • The purchase of TRX comes on the heels of the LFG’s recent purchase of BTC.
  • There are currently 80,494 BTC and $100 million in AVAX in LFG’s possession.

Tron’s USDD stablecoin initiative follows Terra’s UST reserve model, which is growing more popular. In addition, Tron’s algorithmic stablecoin project has recently gone live. As of this writing, USDD is listed on Pancakeswap, KYBer, Sunswap, Sun.io, Uniswap, Curve Finance, Uniswap and Ellipsis, and several other exchanges.

About 211,245,005.49 USDD is the current estimate from tronscan.org. According to statistics, the most active exchange for buying and selling USDD on Saturday, May 7, 2022, was Uniswap version three (v3).

Compared to Terra’s UST ($18.7B), USDD’s $211 million market valuation is a drop in the bucket. TerraUSD (UST) traded for $990.3 million in 24 hours, whereas USDD traded for $2.31 million. USDD’s market value is more than the $199.5 million market capitalization of the Gemini dollar (GUSD).

Company Serves as Early Custodian

504,600,250 in TRX were acquired at an average price of 0.07727 per unit on Saturday, as reported by the Tron DAO and its founder, Justin Sun. According to the Tron DAO Reserve account, the purchase would be used to “safeguard the overall blockchain industry and crypto market,” which is why the transaction was made. Justin Sun, the creator of Tron, tweeted this weekend that “[Tron DAO Reserve] has done its job.”

At the time of settlement, the purchase of 504,600,250 TRX by the Tron DAO Reserve was valued $38.99 million. The purchase of TRX comes on the heels of the Luna Foundation Guard’s recent purchase of BTC for $1.4 billion (LFG). There are currently 80,494 BTC and $100 million in AVAX in the non-profit LFG’s possession to secure UST. Additionally, Tron DAO has joined with three crypto institutions that are now recognized as Tron DAO Reserve members. Ponoex, Alameda Research, and Amber Group are some of Tron DAO Reserve’s institutional partners; the company also serves as USDD’s “early custodian.”

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.