The USDD stablecoin is trading under a depegged situation for 24 hours.
USDD is a Tron blockchain network-based stablecoin, which is backed by TRX reserved funds. This stablecoin helps Defi protocols in the Tron smart contract ecosystem to allow easy trade services for traders. Tron is an efficient blockchain network, which operates blockchain operations on Proof-of-stake (PoS) model.
At the time of writing this article, the current trade value of each USDD is equal to $0.9785. This trade value should be equal to $1, which means USDD depegged by 2.15%.
Perhaps, the USDD stablecoin is backed by the overcollateralized value of TRX coins but still fails to remain stable at a $1 value. This situation is showing that big USDD holders are in fear with this stablecoin.
In the past few weeks, many reports noted that some controversy was happening in the Huobi company. Few people claimed that the company failed to reserve the crypto assets because they wanted to forcibly pay their employees in stablecoin.
Huobi Global advisor Justin Sun talked about this news and suggested people remain away from FUD.
Just a few days ago, Huobi Korea, a Korean Subsidiary of Huobi Global, announced that they are planning to separate Huobi Korea from Huobi Global. Huobi Global officials said that the domestic Crypto regulatory environment is forcing compay to take such decisions.
For this thing, Huobi Korea will buy all the shares from Huobi Global CEO.
However this news was not controversial but still this was a very bad situation for the exchange and they are thinking that the exchange might face a situation like the FTX meltdown, which went bankrupt on 11 Nov 2022.
Note: Justin Sun is founder of Tron blockchain and also anonymous owner of Huobi Global.