USDD Stablecoin Reserves are Empty!
Since its debut, USDD stablecoin on the Tron blockchain has always been shady. While UST by Terra was promising 20% APR for your investment by using LUNA, Tron team decided to take this one step further by promising 30% APR which was too obscure to collapse.
As crypto ecosystem has been losing blood, we witnessed historical events due to the negative conditions + financial mistakes made by centralized service providers. The collapse of FTX gave birth to more trouble in crypto.
For stablecoins, it is a stress-test time as they have to own 1:1 ratio to stay at the peg levels. Unfortunately, was the majority of coins are not backed by their reserves. USDD, though it still claims that the collateral ratio is 207%, it is far from being realistic.
Do you want to see the real situation of USDD Reserves?
Check tdr.org to learn more about it.
Reserves are Gone!
Here is the total supply of USDD:
As you know, the stablecoins either keep USD in their bank accounts to prove their reserves or some algorithmic stablecoins keep some centralized stablecoins, like USDC reserve of DAI, to prove that each 1 USD worth of Stablecoin is backed by USD in the real world.
The reserves section claim that it is backed by multiple mainstream cryptocurrencies. Yet, we only have 4 USDT, 442,323 USDC and 14,040 BTC in the reserves.
In Reality:
$233835,20 Bitcoin
$442,323 USDC
$4 USDT = $676,162 in reserves with "mainstream" cryptocurrencies.
Unfortunately, the rest of the reserve is in Tron cryptocurrency. When we come back to their statement, they are getting the calculation of 207% collateralization rate not with stablecoins or mainstream crypto but with their Tron bag.
If I had provided 5 USDT to the system, I can only get 4 USDT while the rate is 0 for the other stablecoins!
USDC Reserves are Loaned!
Check the Twitter thread by Lookonchain in which s/he shares incredible on-chain data over the corrupted reserve system of USDD.
Unfortunately, Tron is close to be the next undercollateralized stablecoin that will ruin the whole financial markets built upon it. Trusting to Tron reserves of USDD is not different from LUNA reserves.
To be honest, a bomb with a timer has been planted in the side of USDD. It may not explode today or tomorrow, but we all know that it is inevitable in crypto which has "smart money" people who are waiting for the best time to hunt such projects down.
Remember the fact that when millions of dollars lost by the majority of people, some others made millions with their short positions. De-Fi projects have no open door to be shady anymore. It's just a matter of FUD and shorts to lose $14B wealth in 2 days 😉
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Just wow. Now when Market is Going up somehow shit like Luna or FTX will happen and ruin it again !LOL
The only Stablecoin I can trust or feel safe is BUSD or HBD.
Why you not trust other stable coin such as USDT, USDC? 😉 I can also trust BUSD in stable coins.
Both of them have controversies around them. So, I stay at safe side.
It's always good to stay on the safe side. true. 👍
I agree, BUSD and HBD are good stablecoin in my opinion
Yeah.
Indeed, BUSD looks nice (if reserved 1:1 in bank) and HBD & DAI are totally fine IMHO ^^
Ok. So it's price may fall because it has 0 reserve. Right? I don't even know about this coin. 😂 Thank you for sharing it. Very informative and great analysis.
Pleasure mate, there is a tricky point in the reserves as they are not overcollateralized as it is said :I
https://twitter.com/3305546045/status/1594235525585674241
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This post is very nice. It helps us understand to be careful about trusting stablecoins
Thank you mate, glad to hear :)
I hope investors withdraw their funds before the bomb explodes and all the funds gets imploded. USDD has scam written all over it since when it was first rolled out.
I think USDD is one of the riskiest cryptocurrencies now.
It was bound to happen because it was a similar tokenomics to UST and it looks like USDD was a fail. Nothing made it better than UST and it kept all the failures of UST. I thought it would have a depegging and die off but I guess that can still happen in the future.
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Not sure if Justin can do another trick for this bubble, too ^^
Post voted 100% for the hiro.guita project. Keep up the good work.
Stabilizer for CENT Token
New manual curation account for Leofinance and Cent
Thank you mate
Wherever there is opportunity to make a quick buck at someone elses expense, you'll find Justin Sun's ugly mug.
God that man is a cancer to not only our industry, but on society itself.
I've said it before that USDD is a scam so he can milk more out of TRON and that its only a matter of time before the inevitable UST style death spiral.
Be careful out there...
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