Justin Sun's USDD Stablecoin Drops Bitcoin Backing, Shifts to TRX!

In Brief:

The USDD stablecoin has removed 12,000 BTC from its collateral, shifting its primary backing to TRX.

Tron founder Justin Sun stated that the TRON DAO Reserve aims to upgrade USDD for a more competitive decentralized stablecoin market.

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Justin Sun's USDD Stablecoin Drops Bitcoin Backing, Shifts to TRX!

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The USDD stablecoin, issued by the TRON DAO Reserve, no longer includes Bitcoin in its collateral, as 12,000 BTC worth approximately $726 million has been withdrawn. This change leaves USDD primarily backed by TRX, the native token of the Tron blockchain.

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TRON DAO's Future Plans for USDD

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Tron founder Justin Sun addressed the collateral shift on social media, clarifying that any collateral holder can freely withdraw without approval. He compared the process to MakerDAO's operations and mentioned plans to enhance USDD's competitiveness in the decentralized stablecoin market. Sun did not specify if the TRON DAO was directly involved in the Bitcoin removal.

USDD's Evolution and Market Position

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Initially an algorithmic stablecoin similar to Terra's UST, USDD transitioned to a hybrid model backed by Bitcoin, TRX, USDT, and USDC. Despite the change, USDD remains pegged to the U.S. dollar with a market cap of around $744 million, ranking 96th among cryptocurrencies. TRX, now its primary backing, is known for volatility but has seen significant growth, with a market cap of $13.5 billion.