A Fox journalist said that crypto investors are keeping an eye on Tron’s USDD. USDD had lost its stable just like Terra (LUNA)’s UST stablecoin. Here are the details…
Will Tron and USDD be like LUNA?
TRX, Tron’s native cryptocurrency, has taken a dive and investors have had a rough week. Because stablecoin USDD has de-pegged from the US dollar stable. Meanwhile, Fox journalist Eleanor Terrett seems to be interested in what’s going on with TRX and USDD. In a tweet, the journalist noted that crypto investors are currently showing great interest in the two coins, especially considering what happened to Terra Luna and UST a few weeks ago. cryptocoin.com As we have also reported, he left the UST constant and went into free fall, taking Luna with him. The two have not recovered yet and it is rumored that they may never return to their previous values.
As #Btc and #ETH recover slightly from their weekend lows, investors are keeping a close eye on #USDD and #TRX as some now believe they could be the next dominos to fall in a similar fashion to #UST and #LUNA. Stablecoin USDD has depegged from the dollar, dipping as low as $0.94
— Eleanor Terrett (@EleanorTerrett) June 20, 2022
Meanwhile, Tron and Tron DAO are pouring billions of dollars of collateral onto the market while trying to protect the USDD stable. About $2 billion and over 5 billion TRX have already been distributed for this purpose. However, USDD is still pegged. Currently, USDD is priced at $0.95 while TRX is priced at $0.059. TRX has already lost close to 20 percent in the past seven days. Still, these effects can be attributed to the extreme bearish trend that swept the crypto market over the weekend. Bitcoin hit the $18,000 levels, falling below $20,000, the all-time high in 2017. However, BTC and ETH are recovering. It is not yet known whether the same will happen to TRX and USDD.
Haven’t we learned a lesson from what’s going on in the market?
According to Fox reporter Eleanor, smart investors are wary of the current market environment, where volatile assets are backed by other volatile assets. Apparently, while an entity is floating; Claiming it’s a stablecoin isn’t the best way to instill confidence. On top of that, an investor told the reporter that protocols with a crazy 40 percent plus annual return will always be unstable. The journalist used the following statements:
One investor tells me: Who thought it was a good idea to back assets with other floating assets and call them stablecoins? Fundamental economics principles that have been ignored are always backed by the insane 40 percent returns promised to be unsustainable. Have we learned literally nothing as a community?
today while TRX has dropped 20% over the past 7 days.
One investor tells me: “Who thought that backing assets with other volatile assets and calling them stablecoins was a good idea? Basic economics principles left at the door, supplemented by crazy 40%+ yields promised
— Eleanor Terrett (@EleanorTerrett) June 20, 2022
In the case of Terra, the stablecoin UST has lost its stablecoin. Terra team invested billions to stop depeg but to no avail. The Terra team has launched a new chain. The old chain was called Terra Classic (LUNC). The new chain is now published as Terra (LUNA). As a result, Terra founder Do Kwon and Terra Labs are facing lawsuits in South Korea and the US.
