TronWeekly

Crypto World News

You are here: Home / Search for "USDC"

Search Results for: USDC

Binance CEO Warns Of Long-Term Consequences For Traditional Finance In Crypto Reduction

by

As traditional financial institutions reduce their exposure to cryptocurrencies following a series of ecosystem collapses in 2022, Binance CEO Changpeng Zhao warns that this move could have negative consequences for these players in the long term.

In a tweet, CZ acknowledged that the failed crypto projects of last year hindered growth in the industry but stated that the industry is already showing signs of recovery.

He went on to say that in the long term, these failures may cause traditional financial players to fall further behind in their adoption of cryptocurrency technology, which could have “existential implications” for them in the next 10-20 years.

CZ’s comments highlight the growing divide between traditional financial players and the cryptocurrency industry as more and more institutions distance themselves from the volatile and often unreliable world of digital assets.

However, his warning suggests that those who choose to ignore the potential of cryptocurrency technology do so at their own peril.

While the future of the cryptocurrency industry remains uncertain, it is clear that traditional financial players will need to tread carefully as they navigate this rapidly evolving landscape.

CZ’s warning serves as a reminder that even as the industry experiences setbacks, it still has the potential to disrupt and transform the traditional financial system in ways that we can’t yet imagine.

Binance BUSD Plummets, A Wipe Out Of Market Cap Gains

The market capitalization of Binance’s stablecoin, BUSD, has taken a sharp dive amid worries over solvency and mismanagement. Despite a temporary boost on September 30th, 2022, when Binance forced a swap of its USDC holders to BUSD, those gains have since evaporated.

Problems with the management of BUSD first came to light in January 2023, and despite Binance’s denial of reports that the stablecoin was not fully backed, investor fears led to a major outflow. 

According to blockchain analytics provider Nansen, the circulating supply of BUSD decreased to $15.4 billion on January 25th, a drop of $1 billion from the previous week and $2 billion compared to December 2022.

The recent decline has accelerated BUSD’s market cap decrease from $22 billion, as investors rushed to withdraw money from Binance after it was revealed that the company had misrepresented the amount of digital assets in its collateral reserves by combining corporate holdings on reports.

Related Reading | Polygon Network Takes Second Place In Daily Active Users, Surpasses Ethereum

Ethereum’s DeFi To Get Boost With This Upcoming Launch

by

After a widely reported DAO voting, Ethereum is ready to welcome the debut of Aave V3 shortly. The decentralized lending protocol has submitted a proposal called “Aave Ethereum V3” and asked its community for votes to activate the Aave V3 Ethereum pool [3.0.1].

As per the proposal, the pool would list pre-approved tokens like WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE once the initial setup is finished.

A week prior, the platform’s team member Graham informed that the upgrade, which includes a host of new features such as cross-chain asset functions and community contribution tools, was set to occur this week, TronWeekly reported.

However, the highly-anticipated launch of Aave V3 got delayed as community members contemplated two main options:

One was to deploy new V3 contracts while maintaining the old V2, and the other was to update existing V2 contracts to the new V3 code.

Although technically challenging to achieve, upgrading would have allowed the protocol to retain the addresses of important contracts [such as Pool, Addresses Provider, tokens, debt tokens, etc.].

The second solution, which involved installing V3 contracts while leaving V2 contracts in place, was safer, but it required Aave users to transfer deposits to V3 instead.

Stani Kulechov, founder and CEO of Aave, wrote.

“Upgrading the Aave Protocol Ethereum V2 to V3 market directly would have indeed created some seamless experiences for the users, at the same time creates an event that would require a lot of security procedures and places substantial assets at risk.”

The community subsequently agreed with Kulechov and voted in favor of this option — deploying a new V3 pool instead — with 99.9% of voters opting for the latter.

The launch is being praised by other Eth DeFi players that use Aave’s protocol to access liquidity.

“A Big Step In Ethereum DeFi Space”

Kethfinex, a pseudonymous representative for Lido, a leading protocol in Ethereum DeFi that plugs into Aave, hailed it a “big step forward for the Eth DeFi space.”

Having said that, Ethereum retraced back to $1,530 in tandem with the broader market-wide dip. After ascending to $1671 on Jan 21, the second-largest crypto witnessed a sharp increase in massive profit-taking transactions before falling back by over 8%.

This drop, as per on-chain data provider Santiment, has led to a rise in ETH conversations that accounted for 21% of crypto asset discussions. “This FUD could benefit prices mid-term,” it noted.

Aave V3 Launch Delayed By Ethereum Voting Process

by

In a surprise turn of events, the highly-anticipated launch of Aave V3 has been delayed by an Ethereum voting process. Earlier this week, the platform’s team member Graham tweeted that the upgrade, which includes a host of new features such as cross-chain asset functions and community contribution tools, was set to occur this week.

However, yesterday, it was announced that an Aave Ethereum V3 proposal was up for voting, which will activate its Ethereum pool (3.0.1) by completing all the initial setup and listing WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE, all of which have already been pre-approved by the community.

According to the announcement post, this governance proposal activates the Aave V3 Ethereum pool (3.0.1) by completing all the initial setups and listing the above-mentioned assets. All its addresses can be found in the network’s address book.

The delay in the launch of Aave V3 is due to the fact that the Ethereum pool was still running V2. After careful consideration, the community decided to deploy a fresh V3 instead of upgrading the V2 pool for increased compatibility between the V3 pools and less general complexity. 

The assets to be listed and their respective configurations have been discussed in the governance forum and decided in the snapshot that is mentioned in the announcement post.

Additionally, security procedures have been taken to ensure the proposal execution is simulated within the tests and the resulting pool configuration is tested for correctness. Further, the proposal has been tested using forks on the Aave interface, and its companies have reviewed the code.

This is a momentous occasion for Aave and the entire decentralized finance community, as this upgrade promises to take the platform to new heights. The community is eagerly awaiting the results of the voting and the official launch of Aave V3.

Aave Team Member’s Tweet

According to a January 15th tweet from team member Graham about the launch of Aave V3, it is expected to reduce costs by 20-25% significantly and is set to revolutionize the decentralized lending platform. The new version will also come with efficient mode and other upgrades. However, the community is excited about the launch and is eagerly waiting for the release.

In his tweet, the member disclosed several other organizations’ hard work and dedication in the lead-up to the highly-anticipated launch. The member gave shout-outs to bgdlabs, a Web3 development initiative contributing to the platform. 

Additionally, the member tagged Chaos Labs, the economic security and risk management platform for DeFi protocols, and Gaunt Let Network for their contributions and efforts over the past few weeks that have helped make the launch a reality.

Related Reading | Ethereum Liquid Staking Market Booms With Lido & Rocket Pool Leading The Way: Report

Weekly Market Watch: Bulls Dominate Bitcoin and ETH, Aptos (APT) Gains Momentum

by

Last week, the cryptocurrency market showed a positive trend, with bulls gaining strength over bears for both Bitcoin and Ethereum. Despite some altcoins experiencing significant increases early in the week, as seen on both weekly and daily charts, elevating overall market optimism, these gains were later offset by the end of the week.

Several tokens on the list of weekly gainers have recorded significant increases. Aptos (APT) is currently at the top, followed by Curve DAO Token. Hedera (HBAR) is in third place, with other tokens also showing notable gains.

Aptos (APT), a Layer 1 PoS blockchain often referred to as a “Solana killer,” has been performing exceptionally well among alternative coins. 

Aptos has seen many developments this past week, such as Web3 infrastructure provider Moralis announcing integration with Aptos, adding support for all existing API node wrapper endpoints, and creating dedicated Aptos APIs. 

Additionally, Binance has introduced new liquidity pools for Aptos (APT/BTC, APT/USDT) in its Liquid Swap offering, as reported by TronWeekly.

This sparked a rally, resulting in APT closing the week at $11.75 with a substantial gain. Data from coinmarketcap shows that APT is currently trading above its significant resistance of $14.38, with an 11.56% increase in the past 24 hours and an impressive 77% gain for the week.

APTUSDT 2023 01 22 13 24 29
Source: Tradingview

According to CoinMarketcap, the value of the Curve DAO Token has seen a marked increase in recent days, with the token currently trading at $1.12 and experiencing a 9.38% and 35% increase in the past 24 hours and last seven days, respectively. 

CRVUSDT 2023 01 22 13 22 56
Source: Tradingview

The reason behind this surge in price is said to be a tweet from the token’s official account, which highlighted that the token offers an impressive 77% vAPY to LPs and 77% vAPY for the DAO at the moment, and it appears that the v2 pools are particularly beneficial for new tokens.

HBAR, a cryptocurrency that also serves as the utility token of the Hedera network, has also performed well in the past week. Coinmarketcap reports that HBAR is currently trading at $0.06941 and has recorded a 33.29% increase in the past week. This upward trend solidifies its market position and showcases its ecosystem’s robustness.

HBARUSDT 2023 01 22 13 20 48
Source: Tradingview

Moreover, some popular coins are experiencing gains in weekly charts, including AXS with 24%, Shiba Inu with 19%, and Fantom, with an increase of 18%, according to the data from CoinMarketcap. Some altcoins with losses in the weekly charts are USDC, BUSD, TRON, and LDO.

Bitcoin (BTC) & Ethereum (ETH) Weekly Review

In the past seven days, bulls have gained an advantage over bears as the price of Bitcoin (BTC) surpassed its crucial resistance level at $23,000, and Ethereum (ETH) was traded near $1,600.

Bitcoin (BTC) has reached new heights not seen since August 2022, soaring past the $22,700 mark on January 20th. It marks the first time the largest currency has reached this level. 

BTCUSDT 2023 01 22 13 16 43
Source: Tradingview

The bull run continued as it maintained momentum, breaking through the major resistance level of $23,000 on January 21st. It is a significant development for the cryptocurrency market, and traders are closely watching to see where it will head next.

Similarly, Ethereum (ETH) also experienced an increase in value as the week progressed, starting at $1,552.52. The bulls managed to push the price to a significant resistance level of $1,674.18 on January 21st. However, ETH could not maintain it, and the digital currency closed the week at $1,627.12.

ETHUSDT 2023 01 22 13 19 13
Source: Tradingview

However, Bitcoin is currently being traded at $22,588.86, with a slight 0.04% increase in the past 24 hours and a remarkable 8.22% increase over the past seven days. While Ethereum is trading at $1,626.10, with a minimal 0.01% daily increase and a 4.95% increase in the last seven days.

Shiba Inu Integrated In Robinhood’s Newly Launched Web3 Wallet

by

Shiba Inu [SHIB] along with several leading assets of the altcoin troupe has gained entry into Robinhood’s web3 wallet, Johann Kerbrat, the trading firm’s General Manager announced.

The new wallet launched by Robinhood is a smartphone app that facilitates users to swap and transfer crypto, and view owned NFTs and crypto.

For now, the app is being slowly rolled out to over 1 million waitlisted users via an access code, according to the trading firm. It was previously released in beta to just 10,000 waitlisted customers in September.

Initially, the Robinhood Wallet began its journey on Polygon, an Ethereum sidechain, to offer swaps without network fees. It has just recently added support for Ethereum.

Additionally, the Robinhood app listed integrated more than 50 ERC-20 tokens, including Shiba Inu. Customers can now transfer tokens from the Robinhood app and other platforms to their Robinhood Wallet, including COMP, MATIC, SOL, UNI, USDC, and more.

And that made sense given that the Robinhood Wallet was made to compete with the well-known Ethereum wallet application, MetaMask.

“We built this product to solve the challenges that many users had using competing products, which include unintuitive design and high fees,” Kerbrat told in a media statement. “We heard from our beta users that other products in the market are too complicated and difficult to use.”

As for the memecoin Shiba Inu, the token gained much attention when it was listed on the Robinhood app in April of last year, much to the delight of the SHIB community.

Shiba Inu’s Listing On Robinhood Hogged Limelight

It is worthwhile to recall that the Shiba army raised the hype with a Change.org petition to list the dog-themed cryptocurrency on the commission-free investing app that gained nearly 600,000 signatures.

Apart from Robinhood, the token scored several listings across well-known crypto exchanges, for instance, Bitstamp last Oct.

The largest European exchange had launched SHIB trading in other markets prior to its bringing the token to the US. customers.

As reported by TronWeekly, the asset gained further prominence in terms of fiat transactions by being revived by Upbit, a well-known cryptocurrency exchange in South Korea.

The trading platform added the popular token to its list of fiat transactions. 

Weekly Market Watch: Bitcoin & Ethereum Rises, Altcoins Follow in Their Footsteps

by

The past week saw a positive trend in the cryptocurrency market, with bears losing ground to bulls for Bitcoin and Ethereum. While several altcoins recorded substantial gains on both weekly and daily charts, boosting overall market optimism.

There are some tokens on the list of weekly gainers with noteworthy boosts. Aptos (APT) is in the lead, followed by Decentraland (MANA). Solana (SOL) is in third place. There are also several other tokens that have made notable gains.

Aptos (APT), a Layer 1 PoS blockchain that is commonly referred to as a “Solana killer,” has been performing exceptionally well among alternative coins. On January 12th, APT saw a noticeable increase in value following the U.S. CPI data release. 

It led to a rally, causing APT to close at $6.55 with a significant 22% gain. Despite this, the latest data from coinmarketcap shows that APT is currently trading above its major resistance of $8.103, with a 6.39% increase in the past 24 hours and an impressive 112.24% gain for the week.

APTUSDT 2023 01 16 03 04 53
Source: Tradingview

Decentraland’s (MANA) token has seen a significant increase in value. It is currently trading at $0.7043 with an 18.94% rise in the past 24 hours 87.39% increase in the last seven days, according to CoinMarketcap. This spike in price is attributed to the new features introduced by Decentraland for its users, including new profile and avatar functions as announced via tweet.

MANAUSDT 2023 01 16 03 06 53
Source: Tradingview

Solana (SOL) has seen an impressive 70.32% increase in value over the past week, outpacing the overall crypto market as the weekend begins. Despite the positive trends of Bitcoin and Ethereum, both of which have risen above major resistance levels, Solana has caught the attention of many in the market by experiencing a 40% value surge in a short time frame on January 14th, as reported by Tronweekly.

As reported by Coinmarketcap, SOL is currently trading at $23.27 and has seen a 2% gain in the last 24 hours. However, this upward trend has helped to solidify Solana’s position in the market and demonstrates the strength of its ecosystem.

SOLUSDT 2023 01 16 03 03 17
Source: Tradingview

Moreover, some popular coins are experiencing gains in weekly charts, including Flow, with 52%, and Avalanche (AVAX), with an increase of 41%. NEAR Protocol (NEAR), with 35%, and Filecoin, with a 39% increase, according to the data from CoinMarketcap. Additionally, some altcoins with losses in the weekly charts are USDC, BUSD, LEO, and DAI.

Bitcoin (BTC) & Ethereum (ETH) Weekly Review

In the past seven days, bulls have gained an advantage over bears as the price of Bitcoin (BTC) surpassed its crucial resistance level at $21,000, and Ethereum (ETH) was traded near $1,600.

On January 12th, Bitcoin (BTC) experienced a notable surge in value, climbing to a two-month peak as it broke through the $19,000 threshold. This was the highest point for the coin since November 8th, when it briefly exceeded $20,000. 

BTCUSDT 2023 01 16 03 01 59
Source: Tradingview

With the bulls driving the price upward, the asset rose above $20,000 and even reached just above $21,000 in the early hours of January 14th. But it could not sustain it and dropped back down to $20,900 and closed the week at $20,976, which was open at $16,954, indicating a bullish trend.

Similarly, Ethereum (ETH) also saw an increase in value as it climbed above the $1,400 level. ETH began the week at $1,264.18, but the next day it broke through the $1,300 resistance and rose significantly, reaching a peak of $1,432.28 on January 12th. As the week came to a close, bulls managed to push the price to a major resistance of $1,563.74 on January 14th but were unable to maintain it and closed the week at $1,550.71.

ETHUSDT 2023 01 16 03 00 15
Source: Tradingview

However, CoinMarketcap’s data shows that Bitcoin is currently trading at $20,902.63, with a 0.04% increase in the last 24 hours and a 23.08% increase over the last seven days. On the other hand, Ethereum is trading at $1,552.30, with a 1.01% daily increase and a 22.00% increase in the weekly timeframe.

Related Reading |  Polygon (MATIC) Bull Run as Final Testnet for Zero-Knowledge Rollups Approaches

Here’s Why Binance Will Suspend Terra Classic Transactions

by

The largest cryptocurrency exchange in the world, Binance, had been in the news after briefly stopping withdrawals of the stablecoin USD Coin (USDC) in December 2022. Customers were withdrawing money from the exchange at a significant rate as worries about the exchange developed. The mounting worries reflected a loss of confidence in centralized exchanges as a result of numerous industry scandals in 2022.

However, Binance makes headlines yet again on similar lines, but on a lighter note. Top cryptocurrency exchange Binance has informed that on January 14 at 3:50 a.m. UTC, it would temporarily halt deposits and withdrawals for LUNC, USTC, and ANC via the Terra Classic (LUNC) network. This is as a result of the Terra Classic (LUNC) network upgrade caused by the most recent community suggestion.

It is planned for the Terra Classic (LUNC) network update to start at epoch 15,029, or about Jan. 14, 4:50 a.m. UTC, and last for roughly three hours. While temporary suspensions of deposits and withdrawals will apply, trading in LUNC, USTC, and ANC will not be impacted by the network update. The Terra Classic (LUNC) network’s withdrawal fees for LUNC, USTC, and ANC will be reviewed and, if necessary, adjusted by Binance, according to the company’s website. Once the improved network is judged reliable, deposits and withdrawals for the Terra Classic (LUNC) network will once again be accepted, however, users may not receive any more notice of this.

Binance Reduces LUNC Burns

By effectively banning LUNC reminting from burns, the proposal at the core of the Terra Classic network update attempts to deprecate the seigniorage reward policy. It also seeks to raise gas prices by five times (5x) to capitalization the community pool and increase validator or staking incentives. The proposal claims that over the past four weeks, LUNC’s on-chain burn rate has drastically lowered and will continue to do so as Binance cuts back on burns.

Binance Terra Classic LUNC

According to reports, Binance declared that it will begin to burn 50% of the LUNC spot and margin trading fees instead of 100% in response to recent developments where the LUNC burn is being reminted as a development fund. The LUNC community suggests a five-fold increase in gas taxes in light of the decrease in burn rate. “In terms of market value, Terra Classic’s gas prices are 18.42 times less expensive than Terra 2.0’s. Terra Classic gas prices will still be 3.68 times less expensive than Terra 2.0 even with a 5x increase “which supports the argument for raising the gas tax.

Crypto.com To Remove USDT On Jan. 31 In Canada

by

Leading Singaporean cryptocurrency exchange Crypto.com said that it would officially remove USDT stablecoin for Canadian users on January 31 at 1 p.m. ET.

Informing customers via email, the top exchange said all USDT trading pairs, transactions, deposits, and withdrawals would be removed from the exchange at that moment, and all USDT deposits made by users after that point would be converted to USDC issued by Circle.

The current move coincides with regulators tightening the noose on centralized exchanges globally as a result of the failure of FTX and increasing competition among the top stablecoins.

One of them is Canada’s top regulatory body, the Canadian Securities Administrators [CSA], which stated last month it would increase its monitoring of cryptocurrency exchanges by “expanding existing requirements” for trading platforms operating in the country.

The CSA, in particular, put emphasis on stablecoin saying it “continues to monitor and assess the presence and role of these asset classes in Canadian capital markets,” according to a press release.

CSA regulators also issued a warning to crypto exchanges not to allow any cryptocurrency that may be considered security — a designation that the regulators say could include stablecoins. 

“The CSA is of the view that stablecoins, or stablecoin arrangements, may constitute securities and/or derivatives,” the group said. To evaluate if the digital assets they list are securities or derivatives, crypto exchanges must have developed policies and procedures.

Although a specific date for the new rules’ implementation is not yet known, platforms can anticipate being approached individually to talk about them. An inquiry for comment was not immediately answered by the CSA.

That said, in Sept. 2021, the Ontario Securities Commission [OSC], Canada’s top financial watchdog, banned trading platforms operating locally from interacting with the market-leading stablecoin tether even though it hasn’t made it clear if it considers USDT a security.

Tether’s USDT Has Faced A Rise In Competitors

Following the FTX’s saga, Tether has faced intense regulatory scrutiny throughout 2022 and expressed a desire to increase transparency on its collateral reserves.

The collapse of the SBF’s crypto empire was bittersweet for the largest stablecoin in the world because the exchange platform was Tether’s biggest user.

Competition for Tether’s USDT position as the biggest stablecoin in the cryptocurrency ecosystem has increased as a result. Wall Street firms like BlackRock and BNY Mellon prefer USD Coin [USDC], which has a 29.8% market share in stablecoins.

It also faces extensive competition from Binance’s stablecoin BUSD.  

Huobi Token (HT) 24-Hours Trading Volume Soars By 30%: Details

by

The Huobi Token (HT) trading volume has surged dramatically over the last day, by almost 30%, indicating that the token is now on the uptick.

CaptureHB
Source: Coinmarketcap

Recent news of significant workforce reductions, mandatory stablecoin salary payments, and the shutting down of internal employee communication channels at Huobi has had a negative impact on the performance of the exchange’s native token and trading activity.

After a company representative disclosed the exchange’s intention to decrease its workforce by 20%, CoinMarketcap data reveals that the value of its HT token has dropped by approximately 11% to a low of $4.33 on January 6th from a high of $5.20 on January 1st.

image 39
Source: CoinGecko

Nevertheless, despite lots of trouble at the exchange, the token, which had fallen as low as $4.33, has begun to make a slow comeback. According to statistics from CoinMarketcap, it is presently trading at $4.86, up 2% in the past 24 hours.

Huobi Market Shares Drop To Just 4%

Kaiko’s research report reveals that in the past year, there has been a significant shift in the market share among cryptocurrency exchanges. Huobi’s market share dropped dramatically, falling from 22% in 2020 to just 4% in 2022. 

The market as a whole has seen consolidation, with Binance emerging as the dominant player in terms of trade volume among both centralized and decentralized exchanges. The largest exchange’s market share rose from 37% in 2020 to 57% in 2022, while OKX’s market share also decreased from 21% in 2020 to 9% in 2022.

image 40
Source: Kaiko

Moreover, the report also highlighted that since FTX’s collapse, USDD, the stablecoin produced by the TRON DAO Reserve and hence intimately tied with TRON founder Justin Sun, has been unable to revert to its peg.

This, coupled with token outflows worth $100mn at Sun-owned exchange Huobi due to solvency fears, saw USDD’s value drop from $0.98 to $0.97 on Friday. Sun, however, demonstrated confidence in Huobi by transferring $100mn in USDC and USDT from Binance to Huobi on the same day. 

image 41
Source: Kaiko

The report states:

While USDD could still regain its peg, Huobi faces an uphill challenge in regaining market share. When looking at the market share of trade volume, Huobi was undoubtedly the biggest loser of the crypto bear market.

Related Reading | Polygon: Whale Shuffles 9M MATIC Tokens To Binance

TRON’s USDD Stablecoin Dips Lower Despite Drop In Withdrawals

by

TRON’s algorithmic stablecoin USDD de-pegging got no respite despite withdrawals from Huobi slowed down on the weekend, Nansen data showed.

The crypto exchange was in the limelight following the revelation of cutting down its workforce by 20%. As reported by TronWeekly, Justin Sun, the founder of TRON and a Huobi adviser, finally acknowledged Huobi layoffs in a text message to Reuters after days of denying them.

Its native token, TRX slid down by over 10% in a span of just 2 days and is currently trading at $0.054.

Soon Huobi customers began withdrawing to the tune of over $60 million in just 24 hour period and have surpassed $94 million.

After declaring that the exchange was firing staff, TRON founder Justin Sun moved $100 million worth of his stablecoins to his cryptocurrency exchange Huobi as a trust-building measure.

A closer look into data from Nansen revealed that the funds were moved from Binance to Huobi, where Sun owns a controlling share.

The money was distributed using Tether and USD Coin [USDC] [USDT]. Sun stated that he sent the “personal funds” to demonstrate confidence in the Huobi exchange in a later statement.

Martin Lee, a Nansen analyst, commented that the move “might be to help with the increased withdrawals or maintain a level of confidence in the exchange.”

By the middle of January 8, the rate of withdrawals had fallen to a little under $12 million compared to the previous day, according to Nansen data, demonstrating the impact of the steps taken to increase trust. Weekly withdrawals were down to $84 million from Friday’s $94.2 million total.

TRON’s USDD Price Is Still Down By 97 Cents

The price of Tron’s USDD, which is meant to be tethered to the value of the dollar like other stablecoins, has shifted between $0.983 and $0.972 over the course of the last week, though. It cost $0.977 at the time this article was being written.

In contrast to Tether and USD Coin, Tron’s USDD is an algorithmic stablecoin that relies on trading incentives and collateralized storage of crypto assets to maintain its price.

Algorithmic stablecoins came under scrutiny from the general public after Terra’s stablecoin, UST, unexpectedly dropped and lost $40 billion in value last year.