Tron DAO Reserve Takes Millions of TRX, Bitcoin and Tether to Protect USDD – Bitcoin News

Seven days ago, News reported that the Tron DAO Reserve has purchased $38 million of tron ​​to protect the network’s stablecoin USDD. Since then, and since the terrausd (UST) de-pegging incident, the Tron DAO Reserve has continued to purchase large volumes of digital assets to supplement the project’s reserves. In addition to tron ​​purchases, the organization is adding stablecoins and bitcoin to the mix.

As Terra’s Stablecoin Explodes, Tron’s Algorithmic Dollar-Pinched Crypto Project Acquires Millions of Values ​​of Tron, Bitcoin, and Tether to Defend USDD

Over the past week, all eyes have been focused on the Terra blockchain and native crypto assets LUNA and UST. Both cryptocurrencies were significantly bombarded in USD value, with more than $46 billion in value disappearing from the crypto economy in about three days. Amid all this carnage, Tron DAO Reserve continued to buy crypto assets for digital currency-backed forex reserves. On May 7, News reported that Tron founder Justin Sun and Tron DAO Reserve have purchased tron ​​(TRX) for $38 million.

Since then, the project has continued to buy crypto amid the market carnage caused by the UST fallout. Tron’s stablecoin USDD is also an algorithmic dollar-pegged crypto asset with similarities to Terra’s UST. After purchasing 504.6 million tron ​​(TRX), Tron DAO Reserve tweeted out He said the team aims to “protect the overall blockchain industry and market, prevent panic trading caused by financial crises, and mitigate serious and long-term economic downturns.” Tron DAO Reserve (TDR) also added:

We also manage the permits as early protector of USDD and ensure price stability with reserves.

After purchasing 504.6 million tron, TDR continued to add funds into the reserve last week. “To protect the overall blockchain industry and the crypto market, Tron DAO Reserve purchased 500 BTC at an average price of $31,031.35 for $15,515,675,” TDR said. detailed on May 10. Same day, TDR I said Bought 595,729,832 trons for $45.6 million. While the crypto market was chaotic that day, the TDR team noted “USDD remains stable in today’s market volatility.”

The next day, on May 11, the TDR team tweeted out“To protect the overall blockchain industry and crypto market, [TDR] He bought 1,000 BTC at an average price of $30,096 for $30,096,000.” TDR organization after this acquisition Purchasing 1,467.612,695 TRX for $97 million for reserves. TDR then began buying stablecoins after tron ​​was purchased for $97 million. TDR team announced On May 12:

To protect the overall blockchain industry and crypto market, [TDR] At $98,200,000, he bought 100,000,000 USDT at an average price of $0.982.

The TDR team did not stop there and continued to buy more coins to protect the stablecoin USDD of the Tron network. TDR said on May 12, Purchased 200 million USDT for $0.985 per unit, which came up to approximately $197 million in US dollars. The Tron-based stablecoin reserve team then Purchasing 1,249.57 BTC, with an average price of around $29,394.

Tron’s Justin Sun ‘Still Believes in Algorithmic Stable Coins’

Currently, as of Saturday, May 14, 2022, the USDD stablecoin has a market cap of approximately $272.36 million, with 271.438,207 USDD in circulation at the time of this writing. The past day, USDD saw $85.5 million in global trading volume, making it the 156th largest market cap of the crypto asset.

Similar to the Terra blockchain’s mechanism to burn LUNA to generate UST, issuing a single USDD costs $1 worth of trona to issue the crypto asset. This means that it can grow as much as the market allows, as it allows anyone to mint the stablecoin without permission. However, with the market turmoil caused by the UST de-pegging event, it’s safe to say that the crypto community is wary of algorithmic stablecoin assets.

Despite the problems last week, Tron founder Justin Sun spoke to Tracy Wang of Coindesk and said he is still optimistic about the algorithmic stablecoin model. “I still believe in algorithmic stablecoins,” Sun told Wang during a Zoom interview.

Tags in this story

Algorithmic stablecoin, algorithmic Stablecoins, Bitcoin (BTC), Blockchain, crypto market, HE Justin Sun, justin sun, LUNA, reserves, protection, TDR, Terra’s UST, Tracy Wang, tron, TRON DAO Reserve, trx, USDD, USDT

What do you think about the USDD stablecoin project created by the Tron team? What do you think of TDR’s purchases this week? Let us know what you think about it in the comments section below.

Jamie Redman

Jamie Redman is a News Editor at News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for News about the disruptive protocols that emerged today.

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