Tron DAO Reserve, the company in charge of managing USDD’s reserves, has today announced the purchase of $50 million in Bitcoin (BTC) and Tron (TRX).
The acquisition was announced in the following tweet, which also stated that the Bitcoin and TRX were purchased “to preserve the overall blockchain industry and crypto market.”
Tron DAO-USDD is now overcollateralized by 197%
Tron DAO’s objective to overcollateralize the USDD stablecoin by a minimum of 130 % includes the purchase of $50 million in Bitcoin and Tron (TRX). As shown in the screenshot below courtesy of the USDD website, the algorithmic stablecoin of USDD is overcollateralized by a factor of 197 percent at the time of writing.
The USDD is backed by 14,040.6 Bitcoin, 140 million Tether (USDT), and 1.906 billion Tron at the moment (TRX). The value of USDD reserves is presently $683.515 million.
Bitcoin drops to a new low of $28,099 in the local market
The Tron DAO reserve’s $50 million purchase of Bitcoin and TRX comes at a time when BTC is witnessing a significant retreat, with a local low of $28,099 just moments ago. The daily BTC/USDT chart below continues to indicate to a few more days of bearishness for Bitcoin. The daily MFI, RSI, and MACD all indicate that selling will continue below the 50-day moving average (white).
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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