On June 18, there was a shakeup in the cryptocurrency market, and Bitcoin fell to a low of $17,593 per unit. The following day, the cost of one unit of Tron’s stablecoin USDD dropped to an all-time low of $0.928.
Further, on June 27, USDD finally managed to return to the $0.98 to $0.99 region after eight days, and it has been trading there ever since, with the exception of a brief increase to $1 per unit on July 3.
The TRON DAO Reserve continued to contribute additional collateral to the project even though the stablecoin was selling at a price below its usual level for two weeks.
Tron DAO has now revealed approximately $2.2 billion in reserves, a guarantee for 723 million USD. It shows that Justin Sun Dao is well-positioned to avoid the USDD depeging, as seen by Tron Dao’s $2.2B in reserves.
Will TRON avoid a collapse?
Tron’s stablecoin USDD dropped below the $1 parity between June 13 and June 27, reaching a low of $0.928 per unit on June 19. The USDD exchange rate increased during the preceding week to a range between $0.98 and $0.99, reaching $1 on July 3.
However, between June 13 and June 15, the USDD’s fiat currency’s value fell to a record low of $0.964 per unit. To prevent de-pegging at the time, the Tron Reserve DAO continued to purchase USD. The value of Bitcoin (BTC) and several other popular cryptocurrencies decreased considerably within the same time frame.
Early in May, just before UST started to decline below $1, USDD was introduced. To maintain a one-to-one peg to the dollar, USDD uses a complex algorithm in conjunction with a related token called tron, as opposed to holding large amounts of cash and other assets that resemble currency. Reserves of $2.2 billion and a USD 723 million guarantee.
Was this writing helpful?
Source: https://coinpedia.org/news/here-is-how-much-tron-dao-has-in-reserves/