Tron Founder Justin Sun Took Decision on Stablecoin USDD

Big Move

Earlier this week, the well-known founder of the Tron blockchain DAO ecosystem, Justin Sun, announced that he had swapped over $773,000 of Tron’s native stablecoin USDD.

Tron’s (TRX) Justin Sun, tweeted on Twitter on December 12, 2022, stating “Deploying more capital-steady lads.” It is similar to ones posted just before the Luna Terra crash dating back in May, by the fugitive Terraform Labs CEO Do Kwon.

Tron’s USDD is a decentralized stablecoin that is actually structured to be utilized similarly with the Terra’s UST design of mint-and-burn. Recently, the Seoul Southern District Prosecutors’ Office reported that they will coordinate with Serbia to detain the “most wanted” boss behind the loss of $40 billion.

Justin Sun presented the transaction data showing a swap of $570,000 in USDT and $203,000 in USDC in exchange for the USDD stablecoins. Usually backed by actual assets, such as short-term government securities, commercial papers, dollars, the stablecoins have traded less than $1 back from the two months this year.

According to the data from CoinGecko, it reveals that USDD is at $0.981 at the time of writing, after Justin Sun’s swap move. It has a current trading volume of $124,513,352 with a total market capitalization of $708,211,833at the time of publication.

Justin Sun was also in the limelight as a Savior for rescuing the group of FTX investors. Not only this, Tron-related tokens (TRX, HT, SUN, JST, BTT) were also lost in the implosion of the now-bust crypto exchange FTX.

As per the media reports, in an official statement given by the centralized global crypto exchange Huobi just before the FTX collapsed, in which Justin Sun is the board advisor, remarked the holders of Tron-related tokens will soon be able to take out funds even if the withdrawals get halted.

Huobi announcement regarding the Tron and HT communities states, that “no matter how things evolve, Tron DAO and Huobi will do their best to support the exchange of the TRON tokens (TRX, BTT, JST, SUN, HT) deposited on the FTX platform at a 1:1 ratio, including during the worst case scenario that we all know may happen.”

At the End

Justin Sun, who is also the permanent representative of Grenada at the WTO (World Trade Organization), announced on Twitter that he will be deploying more capital to defend USDD.

The hybrid model doesn’t seem to be trustable by the majority of investors. Tron claims that USDD is overcollateralized, backed by Bitcoin (BTC), TRX and USD Coin.