Tron Price Sinks 8%, USDD Depegs Amid Drama at Justin Sun-Related Huobi Crypto Exchange

Linh Nguyen — Fri, 06 Jan 2023 10:54:57 +0000

@ Crypto Insider

Community sentiment soured around Huobi, which has Tron founder Sun as an adviser, after it said it will lay off hundreds of staff in coming weeks.

The price of Tron (TRX), the 18th-largest token by market capitalization, tumbled Friday amid tensions stemming from crypto exchange Huobi as the broader crypto market held steady.

Tron founder Justin Sun sits on Huobi’s advisory board. The exchange said Friday it will cut headcount by 20% and require employees to take their salaries in stablecoins. It also closed internal staff communication channels to quell a rebellion, according to reports on Twitter.

TRX fell nearly 8% in the past 24 hours, data shows. The price is above a support level of 5 cents, and if it drops below, the tokens could slip to as low as 3 cents, price charts show. Huobi’s native HT exchange tokens have lost as much as 11% in the past 24 hours.

The Tron-based stablecoin USDD fell 3 cents, effectively losing its intended peg to the U.S. dollar. Such price action caused the value locked on Tron-based decentralized applications to fall by 2%, DeFiLlama data shows.

As such, futures tracking TRX saw under $1 million in liquidations on exchanges, suggesting the selling was mostly spot driven. Spot refers to actual tokens, while futures are derivative financial instruments that allow traders to bet on the prices of the underlying tokens.

Meanwhile, security firm PeckShield noted on Twitter that crypto wallet addresses linked to Sun moved over $50 million to crypto exchange Binance.

The fund movements came amid speculation among Twitter users about the overall health of Huobi and the safety of customer funds. Data from blockchain analytics Nansen showed Huobi had seen some $60 million in fund outflows over the past 24 hours.

Sun, Tron, and Huobi did not immediately respond to CoinDesk’s requests for comment.

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Tron’s USDD Stablecoin Falls to Under $0.97, Lowest Level Since June

Linh Nguyen — Mon, 12 Dec 2022 09:34:24 +0000

@ Crypto Insider

The algorithmic decentralized stablecoin modeled after Terra’s now-defunct UST lost its dollar peg last month as the collapse of FTX dented investor confidence in digital assets.

The Tron network’s algorithmic stablecoin decentralized USD’s (USDD) search for a stable U.S. dollar peg continues even as the broader crypto market holds steady in the face of widening FTX contagion.

The stablecoin championed by Tron’s founder Justin Sun and managed by Tron’s decentralized autonomous organization (DAO) fell to $0.9695 early Monday, hitting the lowest since June 22, according to data source Coingecko.

USDD deviated from its 1:1 dollar last month as the collapse of cryptocurrency exchange FTX, formerly the world’s third largest, dented investor confidence in digital assets. Other leading stablecoins like tether (USDT) wobbled following the FTX debacle, but quickly regained their peg.

USDD’s prolonged de-pegging is accompanied by a steady increase in the stablecoin’s dominance rate in the USDD/3CRV liquidity pool based on the decentralized exchange Curve.

At press time, USDD accounted for 86% of the pool’s total liquidity of $34.5 million, up from 80% seen on Nov. 10. The heavy imbalance suggests users are increasingly swapping USDD for the pool’s other components – DAI, USDC and USDT.

In an attempt to calm market nerves, Justin Sun announced on Twitter that he is deploying more capital to defend USDD while stressing that the algorithmic stablecoin has a collateral ratio of 200%.

USDD’s inability to regain the peg has Crypto Twitter wondering whether the dollar-pegged coin modeled after Terra’s now-defunct algorithmic stablecoin, UST, is the next to go down.

UST crashed in May, destroying billions in investor wealth. However, before the crash, UST’s market capitalization was $18 billion – or 18 times bigger than UST’s going market value of less than $1 billion. In other words, the fallout from a potential USDD collapse might be less severe than UST.

The post Tron’s USDD Stablecoin Falls to Under $0.97, Lowest Level Since June appeared first on Crypto Insider.

USDD Archives - Crypto Insider

Tron Price Sinks 8%, USDD Depegs Amid Drama at Justin Sun-Related Huobi Crypto Exchange

Community sentiment soured around Huobi, which has Tron founder Sun as an adviser, after it said it will lay off hundreds of staff in coming weeks.

Tron’s USDD Stablecoin Falls to Under $0.97, Lowest Level Since June

The algorithmic decentralized stablecoin modeled after Terra’s now-defunct UST lost its dollar peg last month as the collapse of FTX dented investor confidence in digital assets.