USDD : The new time bomb is ticking

[bartosimpsonio]

Tron is launching USDD, an algorithmic "stablecoin" backed by Bitcoin

It's like they learned nothing from Terra LUNA

Well USDD is promising 30% APY. This is impossible.

https://www.reddit.com/r/Tronix/comments/ui7l97

This just got removed off Reddit:

https://www.reddit.com/r/CryptoCurrency/comments/vasvqk

So USDD is backed by several tens of thousands of BTC. In order to honor USD withdrawals, they gotta dump BTC for cash dollars. This is where the avalanche effect comes in: sell BTC to cover dollars, BTC price falls, more BTC needed to cover dollars, repeat until crash.

This is how Terra crashed the markets. USDD will do the same.

 

[IG Professor]

Get soon as you can to this ponzi as it still early

 

[bartosimpsonio]

Get soon as you can to this ponzi as it still early

See the Reddit comments. Experienced traders are warning everyone to GTFO while they can.

Also the less people join this, the less damage is done onto the rest of the ecosystem. They're gonna dump Bitcoin to honor these USDD, it's gonna fuck everyone up again right after Terra.

 

[IG Professor]

See the Reddit comments. Experienced traders are warning everyone to GTFO while they can.

Also the less people join this, the less damage is done onto the rest of the ecosystem. They're gonna dump Bitcoin to honor these USDD, it's gonna fuck everyone up again right after Terra.

How it is called when your bank saving your money and soon as someone else asking for a loan they give it to him?

 

[xReminisce]

So USDD is backed by several tens of thousands of BTC. In order to honor USD withdrawals, they gotta dump BTC for cash dollars. This is where the avalanche effect comes in: sell BTC to cover dollars, BTC price falls, more BTC needed to cover dollars, repeat until crash.

Some people don't learn

 

[i_am_that_i_am]

Feels like Deja vu. Wondering what tron dev are thinking launching this on the heels of luna's double crash.

 

[bartosimpsonio]

Feels like Deja vu. Wondering what tron dev are thinking launching this on the heels of luna's double crash.

AND during a Bitcoin crash as well

 

[destroi]

now I 'll be rich doing short, waiting the crash

 

[Archer99]

They're quite similar, but there are some differences.

Anyway, I personally wouldn't risk it, especially after the Luna disaster.

 

[bartosimpsonio]

Turns out TRON is acting more responsibly than Do Kwon did

https://twitter.com/x/status/1536277411871920128

 

[moonshine7000]

All you have do is short the price of BTC to attack that coin.

 

[blackbeans]

Isn't there proposed legislation/regulation regarding stablecoins?

 

[onlinemarketer12]

They also like to make huge money like Luna founder. There is no fear of law among these powerful people.

 

[FluffyB]

You attach the USD- prefix to any name and tada it became equal to 1 USD. Magical isn't it?

 

[blackbeans]

The people behind Tron might be laying a bull trap

Still, speculators are hitting SOME stablecoins hard

Is TETHER (USDT) too far behind?

 

[awesomewebsites]

Why is this happening exactly after Luna? Do they also have same plans?

 

[lotsofmoney]

30 % apy is hard to maintain when there are lot of investors. If you do not like lot of risks, stay away from this project.