Tron's USDD stablecoin loses dollar peg following alleged selloff by Alameda Research
Wallets associated with Sam Bankman-Fried's Alameda Research could be behind the dollar's decline, says Tron founder.
Altcoin Watch
In April 2022, the Tron network launched the USDD, a token pegged to the US dollar as an "over-collateralized stablecoin", which means that its probability of falling below $1 should be higher low due to excessive reserves supporting its valuation. USDD stablecoin slides below $1
But that wasn't enough to keep the price of USDD at $1 on November 8, when some whales dumped over 11 million USDD tokens to gain exposure to rival stablecoins Tether (USDT) and USD Coin (USDC). A day later, the USDD price fell to $0.96, followed by a modest recovery to $0.98 on November 10.
USDD 24 Hour Price Performance hours adjusted Time range. Source: MessariSelling pressure was visible more broadly in the USDD liquidity pool on Curve's decentralized finance protocol. As of November 10, the pool was heavily out of balance, holding almost 82.50% in USDD and the rest in USDT, USDC and Dai (DAI).
Tron founder Justin Sun speculates that Alameda Research, a crypto hedge fund led by Sam Bankman-Fried of FTX, could be the whale dumping its USDD holdings for
Wallets associated with Sam Bankman-Fried's Alameda Research could be behind the dollar's decline, says Tron founder.
Altcoin Watch
In April 2022, the Tron network launched the USDD, a token pegged to the US dollar as an "over-collateralized stablecoin", which means that its probability of falling below $1 should be higher low due to excessive reserves supporting its valuation. USDD stablecoin slides below $1
But that wasn't enough to keep the price of USDD at $1 on November 8, when some whales dumped over 11 million USDD tokens to gain exposure to rival stablecoins Tether (USDT) and USD Coin (USDC). A day later, the USDD price fell to $0.96, followed by a modest recovery to $0.98 on November 10.
USDD 24 Hour Price Performance hours adjusted Time range. Source: MessariSelling pressure was visible more broadly in the USDD liquidity pool on Curve's decentralized finance protocol. As of November 10, the pool was heavily out of balance, holding almost 82.50% in USDD and the rest in USDT, USDC and Dai (DAI).
Tron founder Justin Sun speculates that Alameda Research, a crypto hedge fund led by Sam Bankman-Fried of FTX, could be the whale dumping its USDD holdings for
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