On May 5, two days after Tron’s algorithmic stablecoin USDD was released, Tron DAO Reserve announced that it has purchased 504.6 million TRON (TRX) to support USDD. In his Twitter posts during the day, Justin Sun explains that he is investing in an altcoin project independent of the Tron Reserve.
TRON founder Justin Sun invests in this altcoin project
On May 8, Justin Sun announced on Twitter that he had purchased UST, and Terra’s founder responded to Do Kwon: It could be the plan.” Etherscan data shows that Justin Sun purchased more than 1 million UST on the Curve platform at 3:10 p.m. in the wallet “0x3ddfa8ec3052539b6c9549f12cea2c295cff5296”.
News comes after Tron’s $38 million purchase of TRX
Terra’s UST reserve system is becoming a popular scheme, and Tron’s USDD stablecoin project is following the model. As I covered in the cryptokoin.com news, on April 21, Tron’s algorithmic stablecoin project was announced and since then the fiat-pegged cryptocurrency has been officially launched. The project currently has several partners and is listed on USDD, Pancakeswap, Kyberswap, Sunswap, Sun.io, Curve Finance, Uniswap, and Ellipsis.
According to data obtained by tronscan.org, at the time of writing it is approximately 211,245,005.49 USDD. Statistics show that as of Saturday, May 7, 2022, Uniswap version three (v3) was the most active exchange to buy and sell USDD. Terrausd (UST) saw $990.3 million in 24-hour transactions, while USDD saw $2.31 million the other day. USDD’s market cap is greater than GUSD’s $199.5 million market cap.
TRON CEO may have secret plans
It is not yet clear why Justin Sun bought UST. Terra creator Do Kwon made a funny statement under the article where Justin Sun announced that he had bought UST: “What are you doing?”. “I may have a secret plan,” Sun replied to Kwon’s tweet.
Some users say that Justin Sun will invest UST cryptocurrencies acquired on Terra’s Anchor platform for an 18 percent rate of return and an extra 12 percent return on USDD. He said he had to pay his own customers with it, and this plan is wise. Following the announcement of the new stablecoin, the TRX price took a big hit, and the platform’s DAO announced that it has received $39 million in TRX tokens. At the time of this writing, TRX price is trading at $0.0826.
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