According to the recent tweet by Tron DAO Reserve, it will pull out 2.5 billion TRX tokens from Binance. Tron DAO’s stablecoin USDD has dropped to $0.9715 per token. This has created instability within the network as it can cause severe de-pegging of the fiat-pegged token.
However, TRON DAO Reserve trying to safeguard the blockchain industry and entire crypto market, has taken a severe step. The TRX tokens will be withdrawn by the community from Binance in best interest. Although no further details has been disclosed by the decentralized autonomous organization.
As the native stablecoin is depegged from the U.S. dollar, other community members are fearing about consequences. After so many incidents took place through Terra Blockchain, the crypto community who have invested in other stablecoins like USDD are closely examining the trajectory.
Tron’s Collateral backings
The biggest cryptocurrency Bitcoin (BTC) has fallen below $21K. It has created severe state of vulnerabilities in the market. Yesterday, the crypto market saw a slight positive development in prices but the USDD is still below $1.
For this, TRON DAO Reserve has transferred 100 million USDC token on TRON to binance so that it can purchase TRX back. Moreover, they have also shared the transaction details on their recent tweet. Earlier, TRON DAO Reserve increased the supply of USDC to 650,000,000 on TRON. The supply was made to defend the USDD stablecoin in the market.
According to TRON, the USDD’s peg consists of tron (TRX) token as its collateral backing with as many as 10.87 billion TRX in the reserves. Additionally, there is 14,040 Bitcoin reserves, 140 million USDT, and 500 million USDC in the Tron DAO Reserve ledger.