The Tron DAO Reserve plans to withdraw 2.5 billion tron (TRX) tokens, worth about $125 million, from the Binance exchange as it attempts to prop up the price of its USDD stablecoin against the US dollar.
This move, announced on Twitter on Wednesday, came as USDD fell as low as $0.958. The price had rebounded to $0.972 as of 5:55 a.m. ET.
By withdrawing $125 million worth of TRX from Binance, the Tron DAO could be attempting to limit the ability of short sellers to open up positions to bet against the token. TRX is currently down 16% in the last 24 hours and could be in danger of a further slide given the prevailing market conditions.
The luna price crashed during the TerraUSD (UST) depegging event in May. Like luna, TRX is used to redeem USDD holders if the stabelcoin’s price dops below $1.
The Tron DAO has previously deployed $2 billion from its treasury to fight short sellers.
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Osato is a reporter at The Block who likes to cover DeFi, NFTS, and tech-related stories. He has previously worked as a reporter for Cointelegraph. Based in Lagos, Nigeria, he enjoys crosswords, poker, and attempting to beat his Scrabble high score.
Source: https://www.theblock.co/post/152151/tron-dao-reserve-pulls-2-5-billion-trx-from-binance-as-usdd-slips-further-from-peg?utm_source=rss&utm_medium=rss