- USDD is an algorithmic stablecoin, which was predestined to be pegged to $1, came down to 93 cents on Sunday.
- Recently, people witnessed the fall of Terra USD stablecoin, which is why individuals are getting afraid that USDD will get shattered too.
- However, USDD has shown some character, and experienced some uptrend in the market, but fear among the investors is still there.
Does USDD Holds The Same Fate As TerraUSD?
USDD, a controversial stablecoin, rolled out just before the TerraUSD collapse, is struggling to keep up with its peg to USD.
The USDD, which is expected to maintain its worth equal to $1, was plunged to 93 on Sunday. The creator of this coin has piled up $2 Billion worth of BTC and other virtual assets, in case the investors tries to fly collectively.
Major problem here is fear. The folks are afraid that USDD will meet a similar fate as TerraUSD. The collapse of the ecosystem triggered a mammoth sell off in the crypto assets, ultimately starting the bloodshed in the crypto market.
The Tron DAO Reserve, which controls the stablecoin, stated that a certain amount of volatility was anticipated because of its “decentralized” nature.
What Is USDD Stablecoin?
USDD is another algorithmic stablecoin, which rolled out before the collapse of UST. For the previous week, it has rapidly traded under a dollar, which it is meant to be pegged with, despite increased selling.
Rather than operating on top of a bed of cash, it has a sophisticated algorithm — blended in with associated token known as Tron — to upkeep its 1 to 1 peg to greenback.
This is the similar manner on which the TerraUSD operated, generating and eliminating of UST and LUNA to maintain the reserves to support the stablecoin.
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Source: https://www.thecoinrepublic.com/2022/06/23/another-dipping-stablecoin-in-the-market-but-it-is-not-terrausd-says-experts/