Justin Sun "reveals hint" to rescue FTX users, TRX flies upstream, USDD depeg again?

According to the flow of events, the stablecoin issued by the TRON blockchain, USDD, has been depeg along with a surprise statement from founder Justin Sun. 

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Surprise statement from the founder of Tron

Thought to be rescued by Binance, FTX's plan to "sell itself" failed and the market was struggling in extremely difficult days.

But recently, FTX seems to have turned to "rescue" Justin Sun. The founder of Tron and Huobi's global advisor yesterday also announced that they will compensate and rescue those holding Sun coins who are being held on FTX. But currently only withdrawing TRX from the platform.

On the morning of November 10, he again announced that he was working with FTX to come up with a solution to control the situation.

 

But the founder said that “this is only the first step towards a comprehensive solution, helping to resuscitate and return to normal for all FTX users. I greatly appreciate the cooperation this time with FTX.” 

By early afternoon, Justin Sun announced that users were able to trade TRX, HT, JST and SUN on FTX and was about to open withdrawals, causing users to rush to buy TRX and push up the price of this coin.

 

Immediately, the price of TRX "pumped" strongly from 0.06 to 2.5 USD, that is, in just 5 minutes, it has increased 41.6 times.

Despite the correction, the price of TRX on FTX is up to 10 times higher than the general market.

USDD loses peg

According to Lookonchain , about 2 days ago, whale 0x3f34 exchanged 4,495,446 USDD to 4,466,269 USDT, at a rate of 0.9935. USDD also started depeg from that point.

 

About 18 hours ago, another whale moved to swap 6,653,731 USDD to 6,519,662 USDT, at a rate of 0.9799.

In terms of assets to secure the reserve, the total supply of USDD is 725 million USD, collateralized by 2 billion USD, or 283%, the project is committed and listed on the official website. 

However, after checking, Lookonchain reflected that more than 99% of TRX is not available and all USDC has been deposited into Justlend. 

This USDC has been lent and only $596 million remains as collateral plus 14,040 BTC ($230 million). That means the actual guarantee rate is only about 114%. 

At the end of the announcement, Lookonchain also issued a warning to users: "If you are holding USDD, please carefully pay attention to the safety of your money".

USDD (Decentralized USD)  is an algorithmic stablecoin issued by TRON (TRX) which claims to be stablecoin 3.0. Implementing this idea, TRON officially launched USDD on May 5, 2022, just a few days before LUNA-UST “evaporated”. USDD works similarly to UST. USDD will be pegged to the USD, 1 USDD is equivalent to 1 USD.

At the time of updating the article, 1 USDD can only be exchanged for 0.98 USD.

Thus, the above may be the latest consequence of the crisis battlefield of FTX.

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Synthesis of Binance – FTX drama 

– Binance liquidates its entire investment of 580 million USD in FTX tokens

– Users massively withdraw from FTX

– The whole market dumped strongly, FTT lost 22 USD

– Binance reached an agreement to buy back FTX

- FTX CEO's assets decreased by 14.6 billion USD, wrote a letter to apologize to investors

– CZ urges exchanges to provide proof of customer deposit

– The Solana system “bears the battle”

– Binance cancels the acquisition of FTX, the market is on fire

– Continually many organizations declare “in solidarity” from FTX

Nov 10, 2022

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