In a recent tweet, Tron DAO ReserveWhich manages the stablecoin USDD, says it is withdrawing 2.5 billion TRX from Binance to “protect the overall blockchain industry and crypto market”.
To protect the entire blockchain industry and cryptocurrency market, TRON will withdraw 2.5 billion in DAO reserves #TRX out of Binance.— Tron DAO Reserve (@trondaoreserve) 15 June 2022
In this regard, TRONDAO Reserve shared two separate transactions from WhaleAlerts in two separate tweets.
TRON DAO Reserve Withdrawn #TRX Off Binance https://t.co/rCA7xqTPNT— Tron DAO Reserve (@trondaoreserve) 15 June 2022
The first transaction pertains to 339,999,999 TRX (16,960,959 USD), which was transferred from Binance to an unknown wallet, and the second was 499,999,999 TRX (25,173,868 USD) transferred from Binance to an unknown wallet.
TRON DAO Reserve Withdrawn #TRX Off Binance https://t.co/x8dVkx4zvA— Tron DAO Reserve (@trondaoreserve) 15 June 2022
Amidst the current sell-off in the market, Tron DAO Reserve previously shared that 700 million USDC (approximately $700 million worth) was injected into Tron DAO Reserves to protect USDD pegs. A tweet also said that another $100 million more USDC had been deposited on Binance to buy more TRX.
For the current market extremes, @trondaoreserve Another 500 million USDC has been received for rescue #USDD peg. Now the USDD collateral rate is 310%. https://t.co/3ZdRvCB0rD pic.twitter.com/z0PXqPXKhu— Tron DAO Reserve (@trondaoreserve) 14 June 2022
Tron founder Justin Sun said yesterday that another 500 million USDC was obtained by TronDAO Reserve to protect USDD pegs.
As previously reported by U.Today, the Tron DAO Reserve said it has increased its 650 million USDC supply on Tron to $2.5 billion. It says it did this to “protect the overall blockchain industry and crypto market”.
Since the start of the week, Tron has fought to protect its ecosystem as Tron founder Justin Sun reported that the funding rate for TRX shorting on Binance had dropped to a negative 500% APR. As a result he said the Tron DAO reserve had deployed $2 billion to fight “massive shorts”.
TRX and USDD Price Action
Tron’s TRX has suffered the same fate as the rest of the market, falling 30.78% from the previous week. TRX is currently trading down 16.45% at $0.050 after falling from an intraday low of $0.046. TRX is set to turn losses for the third consecutive day since June 13.
Meanwhile, Tron’s stablecoin USDD was trading at $0.97, down 1.12% over the past 24 hours, according to data from CoinMarketCap. USDD, which shares similarity with Terra’s UST, is also an algorithmic stablecoin. The USDD launched on May 5 is meant to maintain parity with the dollar.