Tron Moved USDT Reserve to Purchase More BTC and TRX as Reserve

Tron, which launched the USDD algorithmic stablecoin last month, is attempting to avoid the problems that its fellow token TerraUSD encountered by increasing transparency and adding collateral. According to the TDR website, USDD had a collateralization ratio of 218 percent as of Monday morning Asia time. At the same time, the business claimed in a statement on Sunday that a guaranteed minimum collateral ratio of 130 percent would be maintained. TDR’s website indicates $787 million in Bitcoin, Tether, and Tron’s TRX reserves, contributing to $1.4 billion in assets backing USDD in circulation. .@trondaoreserve moved #USDT reserve to purchase more #BTC and #TRX as reserve. https://t.co/mkK2aEAR2n — H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) June 7, 2022 The announcements come only weeks after the Luna and TerraUSD ecosystems crashed, wiping off a combined market worth more than $60 billion. Tron founder Justin Sun said in a recent interview, “We want to have USDD to be overcollateralized, which I think will make market participants more comfortable about using us in the future.” Luna and TerraUSD Algorithmic stablecoins, which are supposed to stay at a fixed price, usually $1, have a tumultuous history. After price drops in the stabilizing token, efforts like Neutrino and Basis have spectacularly lost their dollar pegs. The collapse of Luna and TerraUSD last month wreaked even more havoc on the cryptocurrency market, struggling as...