~snip~The key to his safety seems to be in what Justin Sun has said because Justin Sun is the person responsible for what happens if the USDD just disappears. Just look for Justin Sun, the address of his house where because he is a public figure that I pay attention to is always active on social media x. But I also have anxiety with this situation especially to the cryptocurrency community and fortunately I don't have the slightest for USDD in my wallet.
Justin Sun published a post regarding USDD in which he acknowledged that a collateral ratio of “over 300%” represents “not a very efficient use of capital”, but did not comment on the disappearance of bitcoins from the reserve fund.
~snip~
The same thing always happens when we combine the words "disappears" and "X amount of money" in the same sentence. Nothing has disappeared, those funds have simply changed from one portfolio to another (or several) and hands of course, and in this case with the connivance of Justin Sun and his silence, a silence that says a lot, unless Sun makes a statement about it later, but I doubt it.It sounds like you're referencing concerns around USDD, particularly regarding transparency and the involvement of key figures like Justin Sun. The idea that funds haven't actually "disappeared" but rather shifted from one portfolio to another highlights the importance of transparency and accountability in crypto projects, especially stablecoins.
I have never liked the idea on which USDD is based since we have seen similar disasters before, but if they also try to silence things and the people who should give explanations remain silent, the problem is bigger and more serious.
The same thing always happens when we combine the words "disappears" and "X amount of money" in the same sentence. Nothing has disappeared, those funds have simply changed from one portfolio to another (or several) and hands of course, and in this case with the connivance of Justin Sun and his silence, a silence that says a lot, unless Sun makes a statement about it later, but I doubt it.UST and the collapse of Terra still haunt the community with the vulnerabilities and risks of algorithmic stablecoins. USDD is also one of them, but it has managed to survive not because of a better model but because the Tron ecosystem is not overly active and USDD has not participated in DeFi as extensively as UST.
I have never liked the idea on which USDD is based since we have seen similar disasters before, but if they also try to silence things and the people who should give explanations remain silent, the problem is bigger and more serious.
The problem is that all the advantage that USDD offers is over-collateralization, meaning that in the worst case, the currency will be 170% guaranteed, and these assets are diverse between Bitcoin, stablecoins, and TRON. If Bitcoin is sold, the (170% or more) guarantee will be useless if it is in TRX, but on the contrary, it may lead to the collapse of both systems.
The action of removing BTC from the reserve for USDD could be the first step for Tron to phase out this algorithmic stablecoin, as currently USDD is only backed by TRX - Tron's native token. If I were holding USDD, I would also sell it for USDT to ensure safety.
UST and the collapse of Terra still haunt the community with the vulnerabilities and risks of algorithmic stablecoins. USDD is also one of them, but it has managed to survive not because of a better model but because the Tron ecosystem is not overly active and USDD has not participated in DeFi as extensively as UST.
The action of removing BTC from the reserve for USDD could be the first step for Tron to phase out this algorithmic stablecoin, as currently USDD is only backed by TRX - Tron's native token. If I were holding USDD, I would also sell it for USDT to ensure safety.
The problem is that all the advantage that USDD offers is over-collateralization, meaning that in the worst case, the currency will be 170% guaranteed, and these assets are diverse between Bitcoin, stablecoins, and TRON. If Bitcoin is sold, the (170% or more) guarantee will be useless if it is in TRX, but on the contrary, it may lead to the collapse of both systems.I have never trusted USDD since Justin Sun first proposed it. Sun is not a reliable person. He jumps on every trend in this market without much thought and rarely achieves success. For me, TRC-20 USDT is the biggest success of the Tron blockchain.
I don't know what's so hard about focusing on Tron, trying to lower fees and develop a reliable bridge between Bitcoin and USDT, if it works then gaining liquidity for a stablecoin project like USDD will be easy but fooling investors with a 200% guarantee means freezing money without interest and when they need liquidity they will find that most of the Bitcoin was sold when the price was high (I mean when winter comes after breaking the $100k barrier)
I don't trust the TRX token, so even if 1 USDD is backed by $10 in TRX, it's meaningless. BTC has been withdrawn, meaning USDD is no longer a focus for Tron. I think Tron will soon kill USDD to focus on bigger goals, for hotter trends in this bullrun. We see memecoins on Tron, I won't be surprised if restaking and RWA trends will be strongly supported by Tron soon.
The same thing always happens when we combine the words "disappears" and "X amount of money" in the same sentence. Nothing has disappeared, those funds have simply changed from one portfolio to another (or several) and hands of course, and in this case with the connivance of Justin Sun and his silence, a silence that says a lot, unless Sun makes a statement about it later, but I doubt it.It sounds like you're expressing concern about the transparency and stability of USDD, particularly in light of the involvement of Justin Sun. The situation seems to mirror past events where funds appeared to "disappear," but in reality, they were simply transferred between wallets or entities without proper disclosure or explanation. Sun's silence, in this case, could be seen as a sign of complicity or at least a reluctance to address the issue publicly, which understandably raises red flags
I have never liked the idea on which USDD is based since we have seen similar disasters before, but if they also try to silence things and the people who should give explanations remain silent, the problem is bigger and more serious.
It sounds like you're expressing concern about the transparency and stability of USDD, particularly in light of the involvement of Justin Sun. The situation seems to mirror past events where funds appeared to "disappear," but in reality, they were simply transferred between wallets or entities without proper disclosure or explanation. Sun's silence, in this case, could be seen as a sign of complicity or at least a reluctance to address the issue publicly, which understandably raises red flags
It is very possible that I am wrong, but from my point of view what they are looking for is to divert attention from what is most important, the development of Tron.Tron's strength does not come from the strength of the project, but from the lack of competitors. For example, the Ethereum network has a problem with high fees, and L2 is still in development. TON is facing problems with the arrest of the founder, so once there is a strong competitor, the project will end. Therefore, Justin Sun's attempts, although they were unsuccessful, the weak competition is what encourages him in more projects. If Ethereum fees drop significantly, 80% of cryptocurrencies will lose a lot of their value.