Tron’s USDD Stablecoin Faces Scrutiny After $732M Bitcoin Reserve Withdrawal

• Tron’s USDD stablecoin faces scrutiny after a $732M Bitcoin reserve withdrawal, raising concerns about its stability despite reassurances from founder Justin Sun.
• Despite USDD concerns, Tron’s ecosystem remains robust, with the TRX token showing resilience and SunPump generating significant revenue.

The crypto community is showing growing concerns about the stability of Tron’s USDD stablecoin after the TRON DAO withdrew $732 million worth of Bitcoin from its reserve. In an earlier development in 2022, when Justin Sun announced via his blog, as CNF revealed, TRON would be launching Decentralized USD (USDD) on the network, mirroring the tokenomics applied by UST on the Terra network.

Despite the fears, Tron’s founder, Justin Sun, reassured investors that the withdrawal was a strategic move to ensure the system’s efficiency and safety, highlighting that USDD’s collateralization rate had exceeded 300%, making the action necessary to prevent future threats.

SunPump’s Impressive Performance Amidst USDD Concerns

While concerns over USDD persist, Tron’s ecosystem has seen success with the launch of SunPump, a new meme coin generator that has rapidly gained traction. On Thursday, SunPump outpaced Pump.fun, generating $560K in daily revenue compared to Pump.fun’s $368K. As of 2024, TRON (TRX) has seen the most active daily users at 2M and the highest weekly revenue of $31M, as CNF reported.

Despite the controversy surrounding USDD, Tron’s native token TRX has shown resilience. TRON (TRX) is trading at $0.1544, up 3.92% in the past day and 18.56% in the past week. See the TRX price chart below.