Fox journalist says crypto investors have had their eyes on TRX and USDD since the Stablecoin de-pegged.
It’s a rough week for the Tron community as their favorite Stablecoin, USDD, de-pegged from the USD while the TRX, which is the native crypto on Tron, took a nose dive. Fox journalist Eleanor Terrett seems interested in what’s going on with TRX and USDD.
In a tweet, the journalist noted that crypto investors are currently keeping a keen interest in the two coins, especially considering what happened to Terra Luna and UST a few weeks ago. UST de-pegged and went on a freefall, taking Luna with it. The two are yet to recover and may never recover to their previous values.
As #Btc and #ETH recover slightly from their weekend lows, investors are keeping a close eye on #USDD and #TRX as some now believe they could be the next dominos to fall in a similar fashion to #UST and #LUNA. Stablecoin USDD has depegged from the dollar, dipping as low as $0.94
— Eleanor Terrett (@EleanorTerrett) June 20, 2022
Tron Is Spending Billions On USDD Peg
Meanwhile, Tron and Tron DAO Reserve have been shelling billions of dollars of collateral into the market as they try to maintain the USDD peg. Around $2 billion and over 5 billion TRX have already been deployed for this purpose. However, USDD is still de-pegged.
At press time, USDD is valued at $0.95 while TRX is priced at $0.059. TRX has already lost by close to 20% over the past seven days. Still, these effects may be attributed to the extreme bearish sentiments that swept across the crypto market over the weekend. Bitcoin even breached its custom to drop below the previous ATH of $20k to reach $18k. However, BTC and ETH are recovering. Whether the same will happen to TRX and USDD is yet to be established.
Have We Learnt Nothing?
According to the Fox journalist, Eleanor, smart investors are wary of the current market setting where volatile assets are backed by other volatile assets. Apparently, claiming an asset is a Stablecoin while it fluctuates isn’t the best way to inspire confidence.
One investor told the journalist that a crazy 40% plus annual yield protocols are always going to be unstable.
“One investor tells me: Who thought that backing assets with other volatile assets and calling them stablecoins was a good idea? Basic economics principles left at the door, supplemented by crazy 40%+ yields promised that are always going to be unsustainable. Have we literally learnt nothing as a space?”
today while TRX has dropped 20% over the past 7 days.
One investor tells me: “Who thought that backing assets with other volatile assets and calling them stablecoins was a good idea? Basic economics principles left at the door, supplemented by crazy 40%+ yields promised
— Eleanor Terrett (@EleanorTerrett) June 20, 2022
Terra Nightmare For Crypto market: In the case of Terra, its stable coin UST lost its depeg that also sank LUNA. First Terra team invested billion to stop the depeg but of no use. Today both coins are dead. Terra team instead of supporting old chains launched a new one. Giving the old chain the name of Terra Classic (LUNC) and the new chain now is running with the name of Terra (LUNA). As there are no plans to revive Terra USD (UST) and Old LUNA (LUNAC), investors lost billions. As a result, Terra founder Do Kwon and Terra labs are facing Lawsuits in South Korea and USA.
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Source: https://thecryptobasic.com/2022/06/20/fox-journalist-investors-think-trx-and-usdd-could-crash-like-luna-and-ust/?utm_source=rss&utm_medium=rss&utm_campaign=fox-journalist-investors-think-trx-and-usdd-could-crash-like-luna-and-ust