Fun

Tron DAO Reserve Acquires Millions in TRX, Bitcoin, and Tether to Safeguard USDD

News Feed - 2022-05-16 07:05:26

Tron DAO Reserve Acquires Millions in TRX, Bitcoin, and Tether to Safeguard USDD


Seven days ago, Bitcoin.com News reported on the Tron DAO Reserve purchasing $38 million in tron to safeguard the network’s stablecoin USDD. Since then and since the terrausd (UST) de-pegging event, the Tron DAO Reserve has continued to purchase large quantities of digital assets to bolster the project’s reserves. In addition to the tron purchases, the organization has been adding stablecoins and bitcoin into the mix as well. While Terra’s Stablecoin Imploded, Tron’s Algorithmic Dollar-Pegged Crypto Project Purchases Millions Worth of Tron, Bitcoin, and Tether to Defend USDD


During the past week, all eyes have been focused on the Terra blockchain and its native crypto assets LUNA and UST. Both coins divebombed significantly in USD value and more than $46 billion in value disappeared from the crypto economy in roughly three days. Amid all the carnage, the Tron DAO Reserve has continued to purchase crypto assets for its digital currency-based forex reserves. On May 7, Bitcoin.com News reported on Tron’s founder Justin Sun and the Tron DAO Reserve purchasing $38 million in tron (TRX).


Since then the project has continued to buy crypto amid the market carnage that took place because of the UST fallout. Tron’s stablecoin USDD is also an algorithmic dollar-pegged crypto asset that has similarities to Terra’s UST. After the purchase of 504.6 million tron (TRX), the Tron DAO Reserve tweeted that the team aims to “guard the overall blockchain industry and market, prevent panic trading caused by financial crises, and mitigate severe and long-term economic downturns.” The Tron DAO Reserve (TDR) further added: We also manage the permissions of USDD as its early custodian and ensure its price stability with reserves.


After the 504.6 million tron purchase, the TDR continued to add funds into the reserve this past week. “To safeguard the overall blockchain industry and crypto market, Tron DAO Reserve have bought 500 BTC with an average price $31,031.35 for $15,515,675,” TDR detailed on May 10. The same day, the TDR said it purchased 595,729,832 tron for $45.6 million. While the crypto market was chaotic that day the TDR team noted “USDD holds steady in today’s market volatility.” Buying MOAR! https://t.co/DVG3sIWlic


— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) May 12, 2022



The following day on May 11, the TDR team tweeted: “To safeguard the overall blockchain industry and crypto market, [TDR] have bought 1,000 BTC with an average price of $30,096 for $30,096,000.” Following that purchase, the TDR organization bought 1,467,612,695 TRX for $97 million for the reserves. The TDR then started to buy stablecoins after the $97 million worth of tron was purchased. The TDR team explained on May 12: To safeguard the overall blockchain industry and crypto market, [TDR] have bought 100,000,000 USDT with an average price of $0.982 with $98,200,000.


The TDR team did not stop there and has continued to purchase more coins to safeguard the Tron network’s stablecoin USDD. The TDR said on May 12, it purchased 200 million USDT for $0.985 per unit which added up to around $197 million in U.S. dollars. The Tron-based stablecoin reserve team then bought 1,249.57 BTC at an average price of around $29,394. Tron’s Justin Sun ‘Still Believes in Algorithmic Stablecoins’


Currently, on Saturday, May 14, 2022, the USDD stablecoin has a market valuation of around $272.36 million and there are 271,438,207 USDD in circulation at the time of writing. During the past day, USDD has seen $85.5 million in global trade volume and the crypto asset is 156th largest market cap.


Similar to the Terra blockchain’s mechanism of burning LUNA to produce UST, to mint a single USDD it costs $1 worth of tron to issue the crypto asset. This means it can grow as large as the market allows it as it allows anyone to mint the stablecoin in a permissionless manner. However, with the market turmoil that took place because of the UST de-pegging event, it is safe to say the crypto community is leery of algorithmic stablecoin assets.


Despite the issues this past week, Tron founder Justin Sun talked to Coindesk’s Tracy Wang and he said that he is still optimistic about the algorithmic stablecoin model. “I still believe in algorithmic stablecoins,” Sun explained to Wang during a Zoom interview. Tags in this story Algorithmic stablecoin, algorithmic Stablecoins, Bitcoin (BTC), Blockchain, crypto market, H.E. Justin Sun, justin sun, LUNA, reserves, safeguard, 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 about the TDR’s purchases this week? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living 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 Bitcoin.com News about the disruptive protocols emerging today. Onchain Analysis Report Says Terra"s Bitcoin Reserves Were Sent to Binance and Gemini NEWS | 3 hours ago Seaside Resort in Slovenia Promotes Itself With NFTs NEWS | 17 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleOnchain Analysis Report Says Terra’s Bitcoin Reserves Were Sent to Binance and Gemini Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days


Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing

News Feed

Chainlink Tunrns Resistance Into Support – ATH Next?
Este artículo también está disponible en español. The crypto market showed signs of revival yesterday, with several assets experiencing significant price surges after wee
Grayscale Adds $1 Billion to Crypto Products in Q3, Sees ‘Unprecedented Demand’ for Bitcoin Cash
Grayscale Adds $1 Billion to Crypto Products in Q3, Sees "Unprecedented Demand" for Bitcoin Cash Grayscale Investments has announced a record quarterly performan
Bitcoin Bears Are Taking Fresh Market Positions, But Are They Safe?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Biggest Movers: ATOM Remains Close to 1-Year Lows, as DOT Declines 8%
Biggest Movers: ATOM Remains Close to 1-Year Lows, as DOT Declines 8% ATOM moved closer towards a one-year low on Wednesday, as prices dropped by nearly 10%. This came as DOT also
Solana cracks down on validator sandwich attacks
Prashant Jha12 hours agoSolana cracks down on validator sandwich attacksSandwiching occurs by placing one order before the transaction and another immediately after, which ensures that retail always gets the worst possib
Leveraged MicroStrategy ETFs break $400M as ‘hot sauce arms race’ heat up
Alex O’Donnell8 hours agoLeveraged MicroStrategy ETFs break $400M as ‘hot sauce arms race’ heat upThe ETFs add leverage to MicroStrategy’s already levered-up Bitcoin strategy, and investors can’t seem to get en
Elon Musk’s X to remove likes and reposts from timeline within ‘weeks’
Tom Mitchelhill2 hours agoElon Musk’s X to remove likes and reposts from timeline within ‘weeks’Some believe the change could help cut down engagement-farming posts on the platform — something Crypto X may be all
United Nations, ICP launch digital credentials pilot in Cambodia
Derek Andersen5 hours agoUnited Nations, ICP launch digital credentials pilot in CambodiaThe UNDP’s Universal Trusted Credentials will get its second trial in Cambodia. The plan is to create a 10-country ecosystem.673
David Attlee1 hour agoIndonesia launches its crypto exchange and clearing houseThe platform, monitored by local regulators, will be the only space in the country where the legal exchange of digital assets is allowed.816
Crypto market stumbles amid arrest of Samourai Wallet founders
Ciaran Lyons5 hours agoCrypto market stumbles amid arrest of Samourai Wallet foundersThe crypto market saw extra turbulence after Samourai Wallet’s CEO and chief technology officer faced legal action from the U.S. DOJ.
Amaka Nwaokocha14 hours agoAI proposal sparks conflict in Hollywood as SAG-AFTRA goes on strikeThe AI proposal suggested that background performers should undergo scanning, receive payment for a single day, and grant com
Ethereum Co-Founder Vitalik Buterin Downplays Ethereum PoW Fork, Hopes It ‘Doesn’t Lead to People Losing Money’
Ethereum Co-Founder Vitalik Buterin Downplays Ethereum PoW Fork, Hopes It "Doesn"t Lead to People Losing Money" Ethereum co-founder Vitalik Buterin recently discussed what he think