Tron’s founder Justin Sun on Tuesday said the TRON DAO Reserve transferred Tether (USDT) worth $100 million to Binance to buy more BTC and TRX as a reserve. The TRON DAO Reserve continues to buy BTC and TRX to stabilize its USDD algorithmic stablecoin amid market volatility.
The transaction led to a 2% jump in the TRX price, with the current price trading at $0.08097. However, the Bitcoin price fails to show any significant movement due to market pressure.
TRON DAO Purchases BTC and TRX to Stabilize USDD Stablecoin
TRON DAO Reserve oversees and manages the native stablecoin USDD. However, the sell-offs in the broader crypto market have pushed cryptocurrencies under pressure. In the last 24 hours, Bitcoin and Ethereum prices are down nearly 6% and 8%, respectively. Moreover, the SEC investigation on Binance’s BNB ICO has severely hit the crypto prices.
Furthermore, Justin Sun and TRON DAO are looking to prevent a similar scenario like the TerraUSD (UST) algorithmic stablecoin crash with its USDD stablecoin. Thus, the TRON DAO has purchased BTC and TRX worth $100 million as collateral to provide stability to its USDD stablecoin amid rising market pressure.
In fact, USDD has become the first over-collateralized decentralized stablecoin having the highest collateral ratio of 130%. The real-time collateral ratio of USDD is published on the TRON DAO Reserve’s website, which is 200.88%.
On May 10, TRON DAO Reserve purchased 500 BTC and 600,000,000 TRX worth $60 million as reserves for its USDD stablecoin during market turmoil in May. The new algorithmic stablecoin followed the UST algorithmic stablecoin, but later increased its reserves and collaterals to improve the stability and credibility of its USDD stablecoin.
The TRON DAO Reserve is currently holding 14,040 BTC, 140 million USDT, and 1.9 billion TRX in the reserve, on top of the 8.71 billion TRX already burned to mint the USDD stablecoin.
Why TRON DAO Reserve Buys BTC and TRX at this Time?
There’s no doubt the pressure across the market is rising as Bitcoin and Ethereum continue to drop below critical levels of $30k and $2k, respectively. Factors such as the Fed’s inflation data due on Friday, weak technical charts, and regulatory burden could have been the reason behind the TRON DAO’s recent purchase.
The post Just-In: TRON Boosts Stablecoin Reserve With $100 Mln Bitcoin And TRX appeared first on CoinGape.
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