USDD

Cryptocurrency

when

TRON

<p>Crypto exchange HTX is set to remove several trading pairs with USDD, advising users to cancel pending orders and choose alternative pairs.</p>
<p>Cryptocurrency exchange HTX (formerly <a href="https://crypto.news/tag/huobi/" target="_blank" rel="noopener noreferrer nofollow">Huobi</a>) will delist several (<a href="https://crypto.news/price/usdd/" target="_blank" rel="noopener noreferrer nofollow">USDD</a>) trading pairs just a few weeks after concerns arose over the stablecoin’s backing and recent significant collateral withdrawals by the <a href="https://crypto.news/tag/tron/" target="_blank" rel="noopener noreferrer nofollow">TRON</a> DAO Reserve.</p>
<p>In a Sept. 9 <a href="https://www.htx.com/support/24980173433097" target="_blank" rel="noopener noreferrer nofollow">press release</a>, the trading platform said that on Sept. 12, it will remove 14 trading pairs, including DOGE/USDD, NEAR/USDD, USDD/USDC, and EOS/USDD, among others. The exchange advised users to cancel pending orders and transition to alternative trading pairs. Although the specific reasons for suspending the trading pairs were not disclosed, the exchange stated that the action is intended to offer a “better trading experience.”</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet">
   <p>lmao <a href="https://twitter.com/justinsuntron?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@justinsuntron</a> silently removed the 12.000 btc as USDD collateral recently and it's now 100% backed by tron (except for 20mil. usdt).<br><br>This was the address: 1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj</p>— Symbio (@NoCryptFish) <a href="https://twitter.com/NoCryptFish/status/1826085314219147667?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 21, 2024</a>
  </blockquote>
 </div>
</figure>
<p>The move comes amid ongoing concerns about USDD, particularly following big changes made by the TRON DAO Reserve. In late August, the reserve <a target="_blank" rel="noopener noreferrer nofollow">withdrew</a> nearly $750 million worth of Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) backing USDD, leading to heightened scrutiny. Following the withdrawal, the stablecoin is now largely backed by TRX, TRON’s native token.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet">
   <p>Regarding the decentralized stablecoin USDD, its mechanism is similar to MakerDAO's DAI and is not mysterious. When your collateral exceeds the amount specified by the system (usually between 120%-150% depending on the vault), any collateral holder can withdraw any amount freely…</p>— H.E. Justin Sun🌞(hiring) (@justinsuntron) <a href="https://twitter.com/justinsuntron/status/1826537914173718893?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 22, 2024</a>
  </blockquote>
 </div>
</figure>
<p>TRON founder Justin Sun defended the move, explaining that the previous collateralization rate of over 300% was not “very efficient.” He further assured users of USDD’s stability, highlighting that the stablecoin’s mechanism, similar to MakerDAO’s (<a href="https://crypto.news/price/dai/" target="_blank" rel="noopener noreferrer nofollow">DAI</a>), allows for collateral withdrawals when it surpasses the system’s requirements.</p>
<p>Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/justin-sun-htx-holdings/"> Justin Sun holds $1.6b on HTX, exceeds half of exchange’s reserves </a></p>

HTX to remove multiple trading pairs with Justin Sun’s USDD stablecoin

crypto.news

Other articles published on Sep 9, 2024

Join our free newsletter for daily crypto updates!