Tron DAO raises $100 million in BTC and TRX to bolster USDD reserves
Investing.com – Justin Sun, the founder of Tron, announced today that 100 million USDT has been transferred to Binance to buy BTC and TRX and increase Tron’s DAO reserve.
Tron DAO continues to buy BTC and TRX to maintain the stability of the ecosystem stablecoin USDD.
A Measure Against Market Volatility
Although there is no clear explanation for Tron DAO’s decision to increase its reserves, it has been estimated that this measure was taken as a precautionary measure became market volatility. Tron DAO’s efforts to take strict measures for the ecosystem’s stable crypto asset continue to avoid suffering the same fate as TerraUSD, which has a similar shape in May.
Before this move, Tron DAO bought 500 BTC and 600 million TRX worth $60 million on May 10 to keep USDD stable. The Tron DAO reserve is known to currently consist of 14,040 BTC, 140 million USDT and 1.9 billion TRX tokens. In addition, 8.71 billion TRX has already been burned for algorithmic issuance of stable USDD crypto assets.
USDD, which continues to maintain $1 stability, ranks 67th today with a market value of $703 million. On the other hand, according to the Tron DAO reserve page, USDD’s collateral structure is presented as 200 percent overcollateralized.
Bitcoin (BTC) and Tron (TRX) latest situation
Tron DAO’s additional $100 million purchase decision for BTC and TRX had no impact on the price of both cryptocurrencies. TRX is changing hands at $0.08, down 4% in the past 24 hours. However, it can be said that TRX is acting more resiliently than the rest of the market.
Bitcoin, on the other hand, is down 6 percent to $29,500 over the past 24 hours on the back of recent negative and worrying developments in the market.
At this time when cryptocurrencies, particularly Bitcoin and Ethereum are under selling pressure, Tron DAO continues to prepare for a possible sudden spike in volatility. Due to the leak on social media of the draft law that is said to apply to cryptocurrency regulations in the US and the SEC’s scrutiny of Binance for the issuance of BNB, there have been developments that added to crypto investors’ fears.
On the other hand, the US inflation data to be released this week is also viewed as an external factor that could increase volatility in the crypto markets.
Author: Günay Caymaz