As a seasoned researcher with years of experience in the cryptosphere, I find myself increasingly concerned about USDD, the stablecoin associated with Justin Sun and the TRON blockchain. The recent move to remove around 12,000 bitcoins from its collateral without any approval from the DAO is a stark contradiction to their previous claims of decentralized governance.
12,000 Bitcoins, which were previously held as collateral for USDD, the stablecoin linked to Justin Sun and the TRON blockchain, have been withdrawn without obtaining prior consensus from the Decentralized Autonomous Organization (DAO).
As a seasoned investor with over two decades of experience in the cryptocurrency market, I have witnessed both the spectacular rise and devastating fall of numerous digital assets. The latest move by USDD, which seems to go against its earlier claims about governance, reminds me of the Terra-Luna fiasco that occurred not too long ago. Having closely followed Terra’s ambitious plans, modeled after my own initial investments in similar projects, I found it disheartening to see their ambitions scaled back following Terra-Luna’s unfortunate collapse. It is crucial for digital assets, especially those aspiring to fill the void left by failed projects, to learn from past mistakes and maintain transparency to regain trust among investors like myself.
12,000 BTC that were earlier shown on USDD’s transparency page have now been taken out of the collateral reserve and are no longer visible in the transparency disclosures due to their withdrawal.
In other words, although it’s stated that this decentralized autonomous organization (DAO) operates on the principle of decentralized decision-making, there was only one vote held in May 2023 concerning USDD utilizing ‘burnt’ TRX. This implies a potential lack of clarity or open communication regarding the governance procedures and the idea behind ‘burnt’ assets.
It appears that USDD encountered problems regarding the storage of substantial assets as collateral at HTX without seeking advice from their DAO (Decentralized Autonomous Organization). Moreover, the buffer mechanism designed to maintain the stability of USDD is running low, with only $19 million in USDT remaining and no other stablecoin reserves available.
USDD boasts an overall circulation exceeding that of TrueUSD, Tether Gold, and Terra Classic, with a total amount estimated to be around $744 million.
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2024-08-21 21:56