- This week, $2 billion was injected into Binance to combat the negative shorting rate.
- Wednesday saw the USD tumble below its one-dollar trough, tumbling as low as $0.955.
Justin Sun, the founder of the Tron Foundation, has become more optimistic about the USDD, but the community is not. The Decentralized stablecoin that claimed to be over-collateralized is presently losing a $1 peg. The negative market is to blame, but the USDD looks similar to the TerraUSD (UST).
Tough Times Ahead For USDD
The Tron has replenished the reserve to keep the USD peg in place over the previous several days. This week, $2 billion was injected into Binance to combat the negative shorting rate.
Justin Sun had tweeted:
“Funding rate of shorting #TRX on @binance is negative 500% APR. @trondaoreserve will deploy 2 billion USD to fight them. I don’t think they can last for even 24 hours. Short squeeze is coming.”
After this, Binance deposited 100 million USDC into Tron’s native cryptocurrency TRX. However, only a few days ago, the network is said to have withdrawn 2.5 billion TRX from Binance. The crypto community was not happy about this. Tron’s new action was the subject of several remarks on Justin Sun’s Twitter account. Some called it a ruse, while others inquired about Sun’s plans to protect the crypto industry. As a result, the community drew parallels between Tron’s Sun and Terra’s Do Kwon.
Wednesday saw the USD tumble below its one-dollar trough, tumbling as low as $0.955. Stablecoin was trading at $0.97 at the time of publication, down 40% in trading volume. The price of TRX has fallen by 3.48 percent in the previous 24 hours, bringing it to a new low of $0.0570. The community only hopes that the destiny of USDD and TRX does not match that of UST and LUNA.
