Justin Sun's withdrawal of 12,000 Bitcoin from USDD's reserves has raised concerns about the stablecoin's stability ¹. USDD is now almost entirely backed by TRX, increasing its vulnerability to market fluctuations ¹. The crypto community is monitoring USDD's ability to maintain its peg after the significant change in its collateral structure ¹.

Key points include ¹ ² ³:

- Justin Sun withdrew 12,000 Bitcoin ($735 million) from USDD's reserves

- USDD is now 99% backed by TRX, increasing its vulnerability to market fluctuations

- The stablecoin's collateral structure has shifted significantly, raising concerns about its stability

- The crypto community is monitoring USDD's ability to maintain its peg

- Tron DAO Reserve's role in the shift has also been noted, with the withdrawn Bitcoin relocated to HTX

Recommendations for the future of USDD include ¹ ² ³:

- Diversify collateral to reduce reliance on TRX

- Increase transparency in governance and decision-making

- Implement measures to mitigate potential debug scenarios

- Monitor market volatility and adjust collateral structure accordingly

The Tron ecosystem will be closely watched to see how they manage these changes and how USDD will hold up to increasing pressure ¹.

#PowellAtJacksonHole #BinanceLaunchpoolDOGS #MtGoxRepayments #BinanceBlockchainWeek #LowestCPI2021