TRON DAO, backed by TRON founder Justin Sun, poured hundreds of millions into 2 cryptocurrencies during the day.
Tron DAO bought 600 million TRX and 500 BTC
Tron DAO, the decentralized autonomous organization behind Tron Network, for $45 million respectively, according to Chinese journalist WuBlockchain and received 600 million TRX and 500 BTC worth $15 million. Similar to Terra’s UST mechanism, Tron’s USDD stablecoin is backed by Bitcoin and TRX; this could be a dubious way of stablecoin stability, as the market has already seen an unpleasant situation with Terra…
Justin Sun’s TRON DAO Reserve just announced the purchase of 595,729,832 TRX for $45,641,630 at an average price of 0.07661; and 500 BTC for $15,515,675 at an average price of 31031.35.
— Wu Blockchain (@WuBlockchain) May 10, 2022
What’s going on with LUNA and UST? As we have covered in
Kriptokoin.com news, leading cryptocurrency exchange Binance announced that withdrawals for LUNA and UST have been suspended until further notice. Binance plans to suspend LUNA and UST withdrawals for a time, as the crypto community tries to circumvent the fiasco of keeping Terra’s stablecoin Terra USD (UST) pegged to the dollar.
Withdrawals on Terra Network $LUNA temporarily suspended.https://t.co/hIGrAEzOwD
— Binance (@binance) May 10, 2022
There were more interesting developments beyond that. A frantic effort to save the stablecoin UST resulted in the Luna Foundation Guard (LFG) using its 750 million BTC reserve. Meanwhile, the BTC/UST pair on Binance began to behave erratically, climbing above $42,000 as other Bitcoin dollar markets struggled to protect $30,000. While rumors of a complete meltdown at Terra continued to spread rapidly on social media, the firm’s co-founder Do Kwon remained calm after announcing the bulk BTC liquidity injection.
Kwon argues that Terra’s contingency measures will ultimately lead to a greater decentralization of the crypto industry’s largest decentralized USD stablecoin. He says on Twitter:
Haters will criticize it for centralization and for now they are right. LFG_Reserve made UST more robust, but also temporarily more centralized.
Haters will criticise this for centralisation and they're right, for now. @LFG_Reserve made $UST more robust, but also temporarily more centralised
Fully decentralised reserve mechanism described by @jump_ is being worked on by the @astroport_fi team as we speak https://t.co/0REaVl47Ng
— José Maria Macedo (@ZeMariaMacedo) May 9, 2022
As a result, data from BitInfoCharts is the Luna Foundation Guard’s (LFG) wallet balance has dropped from 70,000 BTC or $2.23 billion to 0 BTC. LFG claimed that not all previously owned BTC was sold and promised to update the community.
