TRON DAO, backed by TRON founder Justin Sun, poured hundreds of millions into 2 cryptocurrencies during the day.
Tron DAO bought 600 million TRX and 500 BTC
The decentralized autonomous organization behind Tron Network, Tron DAO, is worth 600 million dollars and 15 million dollars respectively, according to Chinese journalist WuBlockchain. million TRX and 500 BTC. Similar to Terra’s UST mechanism, Tron’s USDD stablecoin is backed by Bitcoin and TRX; this could be a dubious way of stablecoin stability as the market has already seen a distasteful situation with Terra…
What’s going on with LUNA and UST?
As we mentioned in the news of Kriptokoin.com, the leading cryptocurrency exchange Binance announced that the withdrawals of LUNA and UST have been suspended until a second announcement. Binance plans to suspend LUNA and UST withdrawals for a time, as the crypto community tries to circumvent the fiasco of keeping Terra’s stablecoin Terra USD (UST) pegged to the dollar.
There were more interesting developments beyond that. A frantic effort to save the stablecoin UST resulted in the Luna Foundation Guard (LFG) using its 750 million BTC reserve. Meanwhile, the BTC/UST pair on Binance began to behave erratically, climbing above $42,000 as other Bitcoin dollar markets struggled to protect $30,000. While rumors of a complete meltdown at Terra continued to spread rapidly on social media, the firm’s co-founder Do Kwon remained calm after announcing the bulk BTC liquidity injection.
Kwon argues that Terra’s contingency measures will ultimately lead to a greater decentralization of the crypto industry’s largest decentralized USD stablecoin. He says on Twitter:
Haters will criticize it for centralization and for now they are right. LFG_Reserve made UST more robust, but also temporarily more centralized.
As a result, data from BitInfoCharts is the Luna Foundation Guard’s (LFG) wallet balance has dropped from 70,000 BTC or $2.23 billion to 0 BTC. LFG claimed that not all previously owned BTC was sold and promised to update the community.