Justin Sun Depegs USDD, TRX Drops By 8%; Here’s Why – Crypto News – Crypto News
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FTX Crisis: Justin Sun's Algorithmic Stablecoin USDD Depegs FTX Crisis: Justin Sun's Algorithmic Stablecoin USDD Depegs

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Justin Sun Depegs USDD, TRX Drops By 8%; Here’s Why – Crypto News

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3 years ago

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The global digital asset is struggling to keep up due to recent events like the collapse of Sam Bankman-Fried (SBF)’s FTX crypto exchange and FTT token. However, Justin Sun and his TRON ecosystem token are facing similar challenges in the crypto winter.

Justin Sun’s TRX down by 8%

As per the data, Justin Sun’s Tron USDD Stablecoin is de-pegging heavily and it could be in the process of collapsing. USDD which was meant to trade at $1 is now valued at $0.976, at the press time. It is almost 5% down from its fixed value.

However, its 24-hour trading volume is up by a whopping 226% to stand at $31.4 billion. USDD is holding a market cap of around $709 million.

TRON (TRX) has taken a massive hit as its price has dropped by a major 8% in the last 24 hours. TRX is trading at an average price of $0.0507, at press time. While its 24 hour trading volume has surged by a massive 167% to stand at $441.7 million.

Why USDD can collapse ahead?

Reports suggest that Justin Sun’s Huobi Global closed the communication group with internal employees. It also blocked all communication and feedback channels with the staff. This move comes after Huobi forced employees to accept payments in crypto.

Coingape reported that Justin Sun has confirmed 20% of staff layoffs at Huobi global citing crypto winter. Huobi coin price has already down by around 9% in the last 24 hours. HT’s 24 hour trading volume is also down by 23%.

It is expected that the internal employees can become rebels and rug away users’ assets or can add a backdoor Trojan horse. These possibilities cannot be ruled out as such incidents have occurred on several exchanges over the past years.

Huobi’s shadow owner, Justin Sun, has been on the run of sending billions of dollars of stablecoins around the space. He has been caught transferring funds in and out of Binance.

Ashish believes in Decentralization and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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