Crypto

USDD Stablecoin Lost Its Peg as The Price of TRX Dipped

USDD is currently trading at a discount to USDT, which makes the market question the stablecoin's peg

The miserable stories of the algorithmic stablecoins losing their pegs are still in the air. This current story is about the TRON’s USDD which is in the spotlight, as it is trading at below the dollar parity of 2%.

After the disaster of the UST-Terra fiasco, it seems that another algorithmic stablecoin is at a serious risk of losing its peg.

An example of that is the USDD which runs on TRON’s blockchain and its using a similar algorithm to UST but the stablecoin is tied to TRX.

This situation comes at a time when the price of TRX is also fighting. As of now, most if not all the altcoins are trading for 6% daily loss, after recovering from messy morning session when the asset lost much more.

However, despite all this, Justin Sun remains positive and optimistic as he anticipates the peg to be reestablished within the next 24 hours:

USDD/USDT sunIO 2pool have recovered back to 55/45 balance. I believe it will be back to 50/50 in 24 hours with 247% collateralization rate. You might see the fear here but I see 2% profit opportunity.

By the time of writing this article, USDD is trading at $0.9824 in red.

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