In an announcement, Tron DAO reserve, an organization that oversees the USDD’s reserves, reveals that it has purchased Bitcoin(BTC) and Tron(TRX) worth $50 million.
Tron made the announcement in a tweet that also noted the purchase of Bitcoin and Tron was to ensure the safety of the overall blockchain industry and crypto market.
USDD is Currently Over-collateralized by 194.33%.
The purchase made by Tron DAO of $50 million worth of Bitcoin and Tron (TRX) is in compliance with its goal to overcollateralize the USDD stablecoin by at least 130%. As of 11th June, the algorithmic stablecoin of USDD is overcollateralized by a factor of 197%, though it reduced to 194.33% at the time of writing.
USSD Reserves Are Now Backed By 14,040.6 BTC
According to the USDD website, 14,040.6 BTC, 140,000,000 Tether (USDT), and Tron (TRX) 1,906,000,176, currently backs USDD. $683.515 million is the figure at which USDD reserves are currently valued at.
Daily BTC/USDT Chart Hints At A Bearish Trend For BTC
Tron’s DAO purchase of $50 million worth of Bitcoin and TRX comes amidst the period when BTC is sitting at a low of $28095.44. The daily BTC/USDT chart on TradingView signals a bearish trend for a few more days. The daily MFI, RSI, and MACD point toward a series of selling below the 50-day moving average (white).
Here’s What Bitcoin’s 6-hour chart Reveals
Though analysts looking at Bitcoin’s 6-hour chart predict that selling can make $28k as a short-term floor.
Moreover, $28k could be a considerable support zone for Bitcoin given that the 6-hour MFI and RSI hint at an oversold scenario. However, the investors are cautioned while attempting to long Bitcoin at the current level of low trade volume that is often seen on weekends during bearish trends in markets.
Experts say that given that Bitcoin can retest to a $26,700 low set at a time when the crypto market sell-off as catalyzed by Terra collapsed early this May, a wait-and-see approach would be a more logical move.
ALSO READ: Gorilix (SILVA) gets off to a strong start as Bitcoin (BTC) and Cardano (ADA) suffer losses.
Source: https://www.thecoinrepublic.com/2022/06/15/tron-dao-purchases-50m-worth-of-bitcoin-and-trx-to-safeguard-blockchain-industry-crypto-market/