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 <li>Electronic stablecoins USDD has abruptly started to depeg and is currently trading at $0.974 as Justin Sun engages with FTX.</li>
 <li>According to on-chain data, the depeg of the USDD algorithmic stablecoin was caused by whales selling their holdings. On November 8, a whale traded 4.49 million USDD for 4.46 million USDT at a ratio of 0.9935. As a result, the USDD lost its peg and fell to $0.983.</li>
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<h2 id="header-0">Computerized stablecoins As Justin Sun interacts with FTX, USDD has started to depeg suddenly and is currently trading at $0.974.</h2>
Justin Sun, the founder of Tron, is working on a "wholistic approach" to help <a href="https://www.coingabbar.com/en/crypto-currency/ftx-token-ftt-prices-usd" rel="noopener noreferrer nofollow">FTX</a> overcome its liquidity problems. On-chain data indicated that the algorithmic stablecoin USDD, which is now trading at $0.974, has unexpectedly started to depeg. As previously stated by Justin Sun, Alameda is likely selling USDD to cover liquidity at FTX. He now claims that "essentially panic sell on Ethereum blockchain" is in effect.
Is Justin Sun's USDD Depeg Caused by FTX's Alameda?
On-chain data shows that the USDD algorithmic stablecoin selloff by whales was the reason for the stablecoin's depeg. A whale exchanged 4.49 million USDD for 4.46 million USDT on November 8 at a ratio of 0.9935. The USDD lost its peg as a result, dropping to $0.983.
On November 9, a different whale traded 6.65 USD for 6.51 USD at a ratio of 0.9799, which caused the USD to decline to $0.975. Additionally, Curve's USDD liquidity pool, where users may exchange USDD for other stablecoins like USDT, USDC, and DAI, is notably unbalanced, with USDD making up 82.27% of the total.
Justin Sun, the founder of Tron, said that Alameda Research may be selling USDD to cover the liquidity of the FTX cryptocurrency exchange after several people expressed concerns about the USDD depeg.
Alemeda most likely recently sold their USDD to cover the liquidity of the foreign currency market. Currently, the pool is returning at a good rate.
Supply and collateral for the USDD algorithmic stablecoin are managed by Tron DAO Reserve. Data from Tron DAO Reserve shows that the entire amount of USDD collateral, which is backed by TRX, Bitcoin, USDT, and USDC stablecoins, has fallen to $1.7 billion. Additionally, the collateral ratio has decreased to 214.42%.
However, JustLend is where all stablecoins are staked and generating dividends. Additionally, a staking governance contract has nearly 99% of TRX. There are only 500 million USDC and 14,040.6 BTC worth a total of $230 million in available collateral. Only 114% of the collateral is actually required.
Recently, Tron DAO Reserve revealed plans to expand its USDD collateral by purchasing a total of 1 billion USDT. Tron DAO Reserve previously announced that it would spend $300,000,000 USDT to protect the entire blockchain and cryptocurrency markets.
Strengthening of Binance's Stablecoin BUSD
Binance's BUSD stablecoin is performing well despite the FTX issue, while other stablecoins run the risk of losing their peg. Whales are switching their holdings from USDT and USDD to BUSD.
Binance provided information on both hot and cold wallet addresses as part of its commitment to greater transparency. In addition to 21.7 billion BUSD, Binance possesses 58 million BNB, 4.8 million ETH, and 475,000 BTC. 17.6 billion USDT and 601 million USDC are also held as stablecoins.

FTX Crisis: USDD Depegs from Justin Sun's Algorithmic Stablecoin

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