The TRON DAO Reserve has added a total of $20 million worth of USDD and TRX to its reserves. Announcing via Twitter the DAO stated the move was undertaken “to safeguard the overall blockchain industry and crypto market.”
Minutes later Justin Sun, the blockchain’s founder, too chimed in by confirming the same.
USDD, TRON’s algorithmic stablecoin launched just before the collapse of terraUSD drew inspiration from the latter’s model- creating and destroying units of UST and its sister coin called luna to have reserves to back the stablecoin.
Although, it did not meet the same fate but has struggled to maintain its peg to the U.S. dollar.
Last week, the DAO Reserve, which oversees and manages the stablecoin, said a certain degree of volatility in USDD’s price is inevitable, given its “decentralized” nature.
“Certain % of volatility is unavoidable,” the organization tweeted. “Currently, the market volatility rate is within +- 3%, an acceptable range. We will watch the market very closely and act accordingly.”
USDD was trading at around 99 cents at press times.
Tron’s Founder is willing to spend $5B to bail out Ailing crypto firms
Justin Sun, expressed his interest to join FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao in offering support to distressed crypto firms and could spend as much as $5 billion on acquisitions.
“Lots of” companies have reached out to Sun and the team for help, Sun told The Block after his tweet emerged saying “ready to serve”.
Currently, Tron’s DAO has $2.3 billion in reserves. Sun also mentioned that the $5 billion would be a combination of Tron’s money, as well as his own.
Further he believes that the worst of the crypto winter is over: “I think currently the de-leverage process is passed the worst time. So we just need to clean it up and move forward. I don’t think [the] market will be super bullish, of course.”
As reported by TronWeekly, Tron’s total users reached 100 million on the blockchain’s 4-Year Anniversary.
At the time of publication, TRX’s value stood at $0.07, jumping by 75% from its recent low.