Stablecoin

USDD

Bitcoin

Drops

<h4><strong>The removal of 12,000 BTC—worth approximately $726 million—from its collateral address has left USDD primarily reliant on TRX.</strong></h4> 
<p>TRX is the native token of the Tron blockchain. Let’s discover more about USDD.</p> 
<h5><strong>USDD Shifts from Bitcoin to TRX Backing</strong></h5> 
<p>This development was noticed on X (formerly Twitter) on Tuesday, without any prior <a href="https://usdd.io/#/vote" target="_blank" rel="noopener">official announcement</a> from the TRON DAO. This raised questions about the stability and transparency of the stablecoin.</p> 
<p>Tron founder Justin Sun <a href="https://x.com/justinsuntron/status/1826905560845001031" target="_blank" rel="noopener">responded</a> to these reports by downplaying the significance of the change. He stated on X that there is “nothing mysterious” about the move. He explained that any collateral holder has the freedom to withdraw funds without needing approval.</p> 
<p><img decoding="async" class="wp-image-148876 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/cvxfghghjjhk-300x128.png" alt="" width="546" height="233" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/cvxfghghjjhk-300x128.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/cvxfghghjjhk.png 397w" sizes="(max-width: 546px) 100vw, 546px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/NoCryptFish/status/1826085314219147667?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1826085314219147667%7Ctwgr%5Ed56c1131d2ab25dff2e864f4d65ca997c8112815%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fdecrypt.co%2F246054%2Fjustin-suns-usdd-stablecoin-loses-bitcoin-backing" target="_blank" rel="noopener">X</a></strong></h6> 
<p>He acknowledged that USDD was not capital-efficient and had maintained a “long-term collateralization rate” of over 300%. Sun also mentioned that the TRON DAO Reserve plans to upgrade USDD to make it more competitive in the decentralized stablecoin market.</p> 
<h5><strong>More About USDD</strong></h5> 
<p>However, Sun’s comments did not clarify whether the <a href="https://trondao.org/" target="_blank" rel="noopener">TRON DAO</a> was involved in the decision to remove Bitcoin backing or if the move was made by individual collateral holders. This has led to further speculation about the role and influence of the supposedly decentralized organization in managing USDD’s collateral.</p> 
<p><img decoding="async" class="wp-image-148879 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbghffghfgdfgr-204x300.jpg" alt="" width="463" height="681" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbghffghfgdfgr-204x300.jpg 204w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbghffghfgdfgr-286x420.jpg 286w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxbghffghfgdfgr.jpg 397w" sizes="(max-width: 463px) 100vw, 463px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/bluechip_org/status/1826969753006612744" target="_blank" rel="noopener">X</a></strong></h6> 
<p>USDD was initially launched as an algorithmic stablecoin, similar to Terra’s UST, which collapsed dramatically in May 2022. Following that event, USDD transitioned to a hybrid model, being backed by a mix of assets including Bitcoin, TRX, USDT, and USDC. The recent withdrawal of Bitcoin backing marks another significant shift in its collateral strategy.</p> 
<p><img decoding="async" class="wp-image-148880 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxdsdfsdfsdfey-300x231.png" alt="" width="513" height="395" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxdsdfsdfsdfey-300x231.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/08/vcxdsdfsdfsdfey.png 397w" sizes="(max-width: 513px) 100vw, 513px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/justinsuntron/status/1826537914173718893?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1826537914173718893%7Ctwgr%5Ed56c1131d2ab25dff2e864f4d65ca997c8112815%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fdecrypt.co%2F246054%2Fjustin-suns-usdd-stablecoin-loses-bitcoin-backing" target="_blank" rel="noopener">X</a></strong></h6> 
<p>Despite these changes, this <a href="https://www.coingecko.com/en/coins/usdd" target="_blank" rel="noopener">stablecoin</a> continues to hold its peg to the U.S. dollar, with a market cap of around $745 million, according to CoinGecko. It remains within the top 100 cryptocurrencies by market cap, though it has recently been overtaken by <a href="https://www.altcoinbuzz.io/?s=PYUSD" target="_blank" rel="noopener">PYUSD</a>, PayPal’s new stablecoin.</p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="alignnone wp-image-123700 size-full" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg" sizes="(max-width: 1197px) 100vw, 1197px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner.jpg 1197w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1068x132.jpg 1068w" alt="Injective" width="1197" height="148"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/usdd-stablecoin-drops-bitcoin-backing-relies-on-trx/">USDD Stablecoin Drops Bitcoin Backing, Relies on TRX</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

USDD Stablecoin Drops Bitcoin Backing, Relies on TRX

Altcoin Buzz

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