A new shock among stablecoins
Stable coins, due to crypto support and capitalization growth due to high profitability from staking, were at risk in the general market decline. Passions for UST (Terra) have not subsided yet, as the USDD of the Tron network is facing a systemic crisis.
UST stablecoin in April was in the TOP 3 by capitalization with $20 billion, most of which was deposited on the Anchor platform to receive 20% annual profitability. To maintain the binding of UST to the US dollar, Terra used both the internal coin of the LUNA network and the crypto fund in the amount of $ 3 billion.
It is not known for certain whether the failure was caused by insufficient stability of the system, an external attack or malicious actions of employees (the South Korean police are investigating). However, UST lost its peg to the dollar, after which the crypto fund was depleted, and Luna collapsed.
On May 5, Justin Sun presented a new USDD stablecoin, which is a tracing paper of UST. Just as LUNA ensured the stability of the UST exchange rate, so TRX of the Tron network is responsible for linking USDD to the dollar. In order to attract investors to his project, San offered over 30% of the return for staking.
At first, this had an effect, and TRX showed growth at the end of May.
However, the holiday did not last long: on June 13, USDD lost contact with the dollar, and TRX fell by 22%.
Now Tron is trying with all its might to return the course to a normal value. On June 15, the network announced the purchase of additional TRX in the amount of 100 million USDC. Apparently, this was not enough, since the stablecoin is still trading at a discount.
Justin Sun continues to joke in social networks and wonders why there is low confidence in USDD with a threefold excess of the reserve over the issue. On the other hand, the community has a misunderstanding why, with sufficient collateral, Tron cannot keep the stablecoin rate.
The coming days may prove to be critically difficult for Tron and its investors. If Justin Sun stops additional injections, and the USDD rate does not recover, TRX will undergo a massive sale.