Coin security dealt with the problem that it failed to support BUSD correctly, and Tron's USDD stable currency fluctuated again
The USDD stable currency based on Tron fell below the parity of US $1 again in the first week of 2023 and January 10. Four days ago, the stable currency fell to US $0.972 per unit, and the USDD fell to US $0.977 per unit on Tuesday, January 10, 2023. At the time of writing, the transaction price of the stable coins issued by Chuang was 98 cents per coin.
USDD stable currency dropped to 97 cents per coin
The price of USDD fluctuated slightly, because the stable currency fell to the range of 97 cents several times in 2023. After Terra's stablecoin decoupling event in May 2022, USDD began to be slightly less than $1, causing anxiety in the password industry. Similar deviations have also occurred in other stable currencies. On June 19, 2022, the USDD fell to the low point of 92.8 cents per unit, but the stable currency managed to return to $1, and the trading price was between 98 cents and 99 cents per unit.
In the middle of December 2022, USDD deviated from the parity of US $1. Justin Sun of Tron said that the team deployed more capital. According to statistical data, the value of USDD has been fluctuating since December 11, 2022, and dropped to the low of US $0.971 on December 13, 2022. Last week, a similar situation occurred. The USDD price fell to $0.972 per unit on January 6, 2023. The chart shows that four days later, on January 10, 2023, the action of USDD showed that the stable currency fell to a low of US $0.977 per unit in the past 24 hours.
According to the Tron DAO Reserve page of the project, the over-mortgage rate is 202.41%. Compared with 120% of DAI and other projects and 100% of USDT and USDC, the over-mortgage rate of USDD is 202.41%. In terms of market value, the USDD is currently the eighth stable currency, with 710.3 million US dollars at the time of writing this article at 4pm EST on Tuesday. The number of USDDs in circulation is higher, 725332035.
FUD revolves around stable currency
Generally speaking, stable currency is intended to be a digital asset with stable value. A token is usually worth one dollar. This linkage is usually achieved by using traditional assets to support currencies or using algorithms. In May 2022, when the US $60 billion LUNA collapsed due to the loss of the US dollar peg, the public's confidence in the stable currency was greatly shaken.
The collapse of the currency of Terraform Labs has led to increased vigilance of regulators and the public towards the stable currency, and led to a major investigation of senior executives of the company. It is reported that Do Kwon, the chief executive of the company, hid in Serbia after Interpol issued a red wanted order on him at the request of the Korean government.
Perhaps the most significant impact of the LUNA collapse, at least in terms of regulation, was in September 2022, when the House of Representatives proposed a bill that would prohibit the issuance of algorithmic stable currency in the United States within two years. However, later this year, some regulatory signs of unfreezing the stable currency became apparent.
In late December last year, it was reported that Japan would lift the ban on the domestic issuance of foreign stable currency in 2023. In addition, Zhu Shu of Sanjian Capital said on Twitter that he voluntarily withdrew the class action after the collapse of LUNA. It was revealed that Sam Bankman-Fried may have manipulated and destroyed Terraform's tokens. SBF has been arrested and faced many charges in the United States for managing FTX Group.
At present, in the past 24 hours, the global USDD transaction volume is about US $33.44 million. USDD is sometimes traded at 97 cents, which means that people with 1000 USDD can only get about 970 dollars. At the same time, on January 10, 2023, the dollar trading value of the remaining ten stable currencies was between US $0.997 and US $1. Statistics further show that the currency in circulation of USDD has increased by 0.8% in the past 30 days.