The Tron ecosystem was hit hard last week when the USDD stablecoin lost the $1 stablecoin. However, crypto lending platform Celsius said on Monday it is “pausing” its Twitter and Reddit accounts to focus on restructuring. As stablecoins and credit platforms go through tough times after LUNA and UST, their founders are planning these…
Is USDD the new LUNA? Tron expands its reserves
On Sunday, stablecoin USDD price hit a fresh low of $0.93 before regaining $0.95. More importantly, USDD has lost nearly $19 million in market capitalization in the past week. It fell from $715 million on June 13 to $696 million now. Meanwhile, like the LUNA-UST, the price began to lose its stability.
TRON’s plans to ensure USDD price stability
After USDD lost its dollar peg, Tron DAO recently increased its reserves to support Blockchain. Last week, TRON DAO increased its USDC supply by 300 million. The total collateral value currently backing USDD is $2.34 billion, including 14,040 BTC and $1.08 billion in USDC. Now the Tron team states that the stability of USDD is ensured by the over-collateralization of multiple major cryptocurrencies.
As reported by Kriptokoin.com, Tron announced that it has purchased 10 million USDD today to ensure price stability.
Celsius (CEL) has suspended its social media accounts, when will withdrawals resume?
Crypto lending platform Celsius announced on Monday that it is “pausing” its Twitter and Reddit accounts. He said in a blog post that he is in open dialogue with regulators and officials about when he can resume withdrawals. On that front, “the process will take time,” he said.
Investors worried about a LUNA-like event
Based on the wording of Celsius’s latest announcement, withdrawals from the platform are likely to be suspended indefinitely. Reports report that the firm is hiring restructuring lawyers. It also indicates that he has appointed financial advisor on restructuring Citigroup.
Restructuring is often the first step firms take to find a way to repay their debtors without going bankrupt. Celsius has several highly leveraged loans. Therefore, the fate of Celsius’ customers in this process is not yet clear.
Meanwhile, Lido Staked Ethereum (stETH) prices were falling. Hence, another blow to crypto lending platforms affected by the LUNA collapse. Now the major shareholders step in for support.
Major shareholders step in to thwart the LUNA crisis
Bnk To The Future, which claims to be Celsius’ main shareholder, said it supports a rescue plan for Celsius. CEO Simon Dixon offered in a blog post to devise a recovery plan for Celsius. The firm says it has more than 1,000 customers exposed to the Celsius fiasco. He claims that if Celsius goes bankrupt, it could see a hit to Dixon’s personal finances.
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