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Tron DAO Attacked: USDD Depeg Causes 16% TRX Collapse, Justin Sun Ready to Cash in $2 Billion to Fight Back

Mon, 06/13/2022 - 11:09
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Gamza Khanzadaev
Justin Sun prepares $2 billion to strke back after attack on Tron DAO
Tron DAO Attacked: USDD Depeg Causes 16% TRX Collapse, Justin Sun Ready to Cash in $2 Billion to Fight Back
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Monday, June 13, has turned out to be a collapse for the entire crypto world, but for Tron DAO, things somehow got even worse. As it became known at the very beginning of the day, USDD, the algorithmic stablecoin of Tron, temporarily lost its peg to the dollar. The event caused a corresponding reaction and affected the quotations of TRX, the network's native token. Against the backdrop of negative overall market conditions and additionally spurred by the USDD depeg, TRX dropped more than 16% in price.

Source: TradingView

Sun is ready to fight back

When things started to take a serious turn, Justin Sun, head of the Tron Foundation, appeared on the scene and made some important statements. He reported that the Tron DAO injected 700 million USDC to keep the USDD pegged to the dollar. Following the report, the stablecoin has now recovered and is trading at $0.99.

Earlier, Sun said that the USDD would be overcollateralized at 130% in order not to repeat the path of TerraUSD (UST). You can monitor this indicator 24/7 in the public domain on the Tron DAO Reserve website.

Despite the rebound in the peg, the TRX shorting flywheel is not stopping. Thus, Sun announced that TronDAO will direct $2 billion to combat negative funding on Binance and warned of an impending short-squeeze on TRX. Since then, TRX quotes have managed to show a small bounce, up 3%, but still remains nailed to the ground.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.