Tron’s algorithmic stablecoin dropped as low as $0.95 today.
USDD, which came to life in the past weeks and has the same minting and burning pattern as UST, fell to the level of $ 0.956 today. Then, Tron DAO Reserve announced that it will withdraw 2.5 billion TRX from Binance. Tron (TRX) also lost 13% with the deterioration of the stable.
Tron DAO Reserve, on the other hand, continues to purchase assets to support the stablecoin. The organization, which recently bought 1 billion USDC, also has $ 500 million worth of USDT, Bitcoin and Tron.
Therefore, the organization will withdraw 2.5 billion TRX (approximately $125 million) from Binance to prepare for a possible worst-case scenario. While removing the token from the exchange would allow the team to prevent traders from taking large open positions on the asset; it will also enable Tron DAO to hold a large enough TRX reserve to use USDD holders.
