Question is how many out there are actually active and doing it? I reckon Justin Sun would pull a shady shit like this. He controls Huobi, TRX and a USDD stablecoin - I think he's raking in millions scamming whoever is putting in money into his coins
You're completely right. Despite the fact that I've been in stablecoins for the large part of 2022, I'm still up over 50% when I convert to my local currency. It's actually a financial advice to buy stablecoins over here. But not the likes of UST and USDD actually. Rather BUSD, USDC, EEUR since they're all backed 100% by fiat and don't have any issues.
For those who think that UST's yield was questioning at that time, USDD's yield was even more than that. In addition, both are *algorithmic* "stable" coins, so USDD is pretty much UST, which will eventually collapse soon. Furthermore, USDD got depegged several times already, if you intend to or already hold USDD, then please cash it out immediately.
It is but USDD IS justin sun. It’s not going to fail unless he does. He controls all the levers are the algorithmic portion of it has been shutdown or extremely limited since LUNA. It’s basically his bank, his deposits and his decision unilaterally. Same with Tron, but to a lesser extent. Nobody else owns enough USDD to really break the peg and YoU can only get it from him. The Alameda connection makes more sense in regards to the Tron FTX facility now. Very weird.
No no I’m saying that if the TRX/USDD mechanism causes a TRON failure the same way Luna and UST failed, it might impact USDT in the process because there are three types of Usdt. Omni, ERC-20 and TRC-20, the latest being native to TRON. There is more volume for USDT on TRON than on ETH nowadays. So if the whole TRON chain fails I can see some repercussions on USDT
There are still a few stablecoins backed by crypto. Tron (USDD) and Waves (USDN) are depegged at the moment, with collapsing collateral prices, and no visible revenue outside of later investors. Those would be the obvious next collapses, or someone previously unknown writing off FTX deposits. As for timeline- if we knew exactly we'd be rich, right?
If Binance goes down BTC will go sub $3,000 and most of the Alt market will go to $0 USDT, BUSD, USDD, PAX etc... will all implode USDC, Coinbase, Kraken and maybe Gemini will still be around but mainly just some ERC20, ETH, BTC and maybe some long time Alts ( Link, ADA, XRP) Crypto market cap will be sub $100 billion
I think the right question to ask is "what do we know already?" - FTX and Alameda has a financial liabilities of around 10b - 50b - most of these liabilities are from Alameda & it's subsidiaries - Alameda is one of 9 TronDao council members who can mint USDD as they need - JS and Tron were helping FTX with withdrawals where the Tron and other coin value on FTX was 20x what other exchanges had. JS could have make money on this due to arbitrage. - total USDD in circulation is around 700m - USDD offers ~40% APY - USDD is over collaterised around 200% but it's only backed by Tron, other Justin Sun's shitcoins, USDT and USDC - if you just look at the biggest wallets and holders of all his tokens and stablecoins he has created then you will notice that he and his other projects together are the majority owners of each of the tokens. There is no value to any of the projects. Its all based on TRX and TRX is now based on those other projects. He owns majority of USDD which allows him to exchange this nothingburger USDD stablecoin into actually backed stablecoin. Tha value of USDD is currently based on Tron and its reserves. Soon they plan on making it into Algorithmic stablecoin (like Luna/Terra) was. - Going back to FTX/Alameda. Who knows how much of JS tokens they have. How much it will affect JS and his "bubbleconomy". If they had significant amouns then who knows. Might even start some cascade in Justin's world of wonders. - Final point. Just check the USDD & TronDao website, have a look at the top10 largest owners of each of JS tokens. I think that explains it better than I do. Not financial advice but just some digging I have done.
because being over-collateralized doesn't mean it's impossible to break it. If Asset A has a value of $1, and is backed by 2 Asset B's, which also both have a value of $1, if Asset B falls below 50 cents, Asset A depegs. In very ELI5 terms, unless you over-collateralized by magnitudes it has real risk. Cardano's Djed stable for example is over-collateralized at a ratio of 1:4. Not sure about USDD and also of course, what is the asset they used. Most likely bitcoin, which is why huge drops in bitcoin value has such a widespread domino effect on so many systems that use collateralization.
LUNA, FTT, and now USDD. I imagine a lot of the funds from FTX users buying TRX at ludicrous rates went into liquidation at severe losses or as an attempt to get some of their money back put it into coins like USDD to stake for unsustainably high yields. I'm really sick of these rug pulls.
I think there is an overlooked reason as to why Justin Sun has been getting involved in to the whole FTX and Alameda shitshow. Tron has its own stablecoin - USDD (currently depegged from 1USD) USDD can be minted by 9 entities which are part of the Tron Dao council. First entity to join the Tron Dao council was ... Alameda research which allows Alameda to print USDD and bring it into market. Alameda is now insolvent and owes shit ton of money. If you check the TronDao and USDD websites + dig around how all of Justin Sun's shitcoins are backed, I think it become quite clear why he is getting involved. I could do a whole article on this but not sure if it's worth the effort and if anyone cares. But honestly there are ways by which JS empire could crumble. And that wouldn't be nice considering how much inflated value and money he has in the market. There is also reason why Tron Dao is puchasing shit ton of USDT when it depegged. He is highly exposed to USDT. If USDT depegs and loses value, then his whole shitcoin ecosystem is at risk of blowing up. He is overlevered AF.
Oh, my bad, for some reason i forgot we were talking about USDD, and thought it was about crypto in general. About USDD, i think it will recover, it is a highly controled asset after all and Justin can easily manipulate it however it seems fit. But a 4 cents drop isn't like big loss margin so if you feel like things are at a risk for sure just take it out
I wouldn't be too worried about USDD. It's small-marketcap, hasn't enabled withdrawals yet, and has a limited supply of interest for governance. You should be much more worried about USDT, of which Tron owns 50% of the supply. I don't think he would be bailing out FTX unless he were afraid of something with USDT.
Yeah, I don't know how many times this has to happen before people get beyond their wishful thinking on stable coins. They aren't worth shit if they aren't backed by an SEC regulated public company which has to provide actual of proof of reserves against liabilities. ​ USDT is about as a shady as it can get, including their founders. And people still don't hear me when I tell them the truth that the $1 peg is only "guaranteed" if you are exchanging at least $100,000 worth of USDT at a time. ​ USDD is just another algorithmic-backed scam. People are going to get caught with their pants down and life savings gone **again** and cry about how they never saw it coming and nobody warned them. ​ Rinse and repeat for USDT which similarly refuses to provide cold hard proof of reserves and liabilities. Plus, their founders are Epstein associates which should be huge fucking red flags about the quality of their character.
As someone with no stake in any of this, I'd advise people to get out of any stablecoin, particularly USDT and USDD. Justin Sun moving to help stabilize things is a huge red flag imo, it means that if he didn't more projects were going to be caught with their pants down (and probably still will). And as always, not your keys not your coins -- any crypto you do hold needs to be off exchanges.
Shame, I'd quite like to see USDD in a death spiral. It'd also be super interesting if USDT depegged, from an objective observer perspective. We'd probably see a $3k BTC again if it also death spiralled into oblivion. Circle would have to rename themselves Circle Jerk with the amount of SPLOOSH it would create in their HQ
tldr; Justin Sun’s stablecoin, USDD, has dropped its dollar peg. USDD has a collateral ratio of 283%. The supply is $725 million, and the collateral is $2.05 billion. The real collateral ratio could be closer to 114%. Algorithmic stablecoins destabilize when markets are volatile. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
>Remember USDD? Honestly no lol. I didn't even know there was another stablecoin called USDD. But looking at the comments, I see why. I'm not sure how anyone would put money in another algo stablecoin...by Justin Sun lol.