USDD stablecoin from Tron Foundation loses its peg to the dollar

On the morning of November 10, the value of the asset dropped to a low of $0,97

10.11.2022 - 13:00

343

2 min

What’s new? The algorithmic stablecoin USDD from the issuer TRON over the past 24 hours has lost parity to the US dollar and was momentarily dropping to $0,97. This is evidenced by data from the CoinGecko aggregator. As of 12:35 UTC, USDD is trading at $0,979934, a daily decline of 4,9%. The value of the native token of the TRON (TRX) blockchain is $0,056234 (-5,6%).

CoinGecko’s data

More details about the incident. On November 9, crypto exchange Huobi and TRON founder Justin Sun, who is a member of its global advisory board, announced a willingness to provide a 1:1 exchange of TRX, BTT, JST, SUN, and HT tokens for FTX’s affected users if the platform is unable to do so itself. As a result, the rate of Huobi’s native token on FTX jumped by 581% in 24 hours.

Huobi Blog’s announcement

On November 10, Sun also announced that TRX token trading has been restored on the FTX platform and the parties are working on the possibility of resuming withdrawals.

#TRX trading on @FTX_Official has resumed. Working on withdrawal function. Stay tuned.
— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 10, 2022

USDD’s current depegging from the dollar is not the first in the asset’s history. On June 13, it also temporarily dropped as low as $0,97. The asset currently ranks 61st in the cryptocurrency ranking with a capitalization of $706,98 million.

On November 9, CoinGecko provided data on a 3% decline in the rate of the USDT stablecoin from the Tether issuer. The company denied that the asset was depegged from the dollar, the aggregator’s team also explained that the reason for the incorrect display of the rate was a technical failure when connecting the API interface.

Previously, the MIM stablecoin, at 31,32% secured by FTX exchange’s tokens, lost its parity to the US dollar, dropping below the mark of $0,975. Now the asset has fully restored its peg.

Author: