TRON Steps To Protect TRX, TRON Prepares USD 2 Billion To Protect TRX

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TRON Steps To Protect TRX. Luna coin, Terra’s crypto network has received news in recent days due to its failed stablecoin, TRON DAO founder Justin Sun assured plans to allocate USD 2 billion or around to counter potential attacks on TRX, which seems to be the next target after LUNA.

Reporting from Cryptopotato, Friday (13/5/2022), due to some similarities in how stablecoins Terra and TRON (both are algorithmic), Justin Sun warned his project could become the next target of similar attacks.

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Sun took the matter to Twitter to outline the potential threat, saying Binance’s TRX shorting funding rate had exceeded 100 percent APR, then updating the percentage to have reached nearly 400.

However, Sun assures TRON DAO Reserve plans to deploy USD 2 billion against something similar happening to his project as it happened to Terra.

Sun also noted that USDD (Tron network stablecoin) remains “very stable” amid the latest market volatility. In addition, he said USDD has a total market cap of USD 271 million, while TRON DAO Reserve holds USD 10 billion.

Attention to Terra

In the past week or so, all eyes inside and outside the crypto community have been on Terra and its two native cryptocurrencies LUNA and UST. UST, a stablecoin that is supposed to be pegged 1:1 to the USD, lost that peg, and its price dropped to a low of USD 0.20 on Binance.

TRON Steps To Protect TRX. Since UST is an algorithmic stablecoin with new tokens issued when users burn LUNA and vice versa, this major crash allowed speculators to take advantage of the situation by arbitrage (is the practice of seeking to profit from the price difference between 2 crypto markets at any given time).

This led to a surprising price drop for LUNA. At the time of writing, LUNA is trading at USD 0.006025 or around IDR 88.07, down by 99.18 percent in the last 24 hours.

Tether, World’s Largest Stablecoin Drops Below Rp. 14,649

Previously, Tether, one of the largest stablecoins in the world, broke below USD 1.00 on Thursday to be exact at USD 0.98 or around Rp. 14,357 (assuming an exchange rate of Rp. 14,649 per US dollar). This drop coincided with panic in the crypto market.

These stablecoins, including Tether (USDT) their value is meant to be pegged to one to one with the US dollar. However, currently the price is touching USD 0.98 which in general if it declines, USDT is only around USD 0.99.

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The drop in Tether comes after Terra-network Stablecoin TerraUSD(UST) tumbled below USD 0.30 on Wednesday.

The international head at crypto exchange Luno, Vijay Ayyar said the move was likely fear-driven by speculation of the UST crash phenomenon.

“The environment is ripe for such news events to cause ripples in the market as we can see,” Ayyar said.

Stablecoins are similar to bank accounts in the crypto world, designed to serve as a store of value that investors can use in times of high market volatility.

Tether and USDC, are two of the largest stablecoins, both backed by a sufficient amount of fiat money held in reserve to ensure depositors can receive their dollars when they wish to make a withdrawal.

Previously, the price of bitcoin and other top-tier cryptocurrencies remained in the red. The top-tier cryptos are still compact, experiencing a deep correction.

Based on data from Coinmarketcap, Friday morning, May 13, 2022, the cryptocurrency with the largest market capitalization, Bitcoin (BTC) weakened 2.07 percent in 24 hours and 21.89 percent in a week.

Currently, the price of bitcoin is at the level of USD 28,450.79 per coin or equivalent to IDR 416.2 million (assuming an exchange rate of IDR 14,632 per US dollar).

Ethereum (ETH) is also still weak. Over the past 24 hours, ETH plunged 8.38 percent and 30.02 percent in the week. With that said, ETH is currently at the level of USD 1,917.63 per coin.

The next cryptocurrency, Binance coin is also still weak. In the last 24 hours BNB fell 2.65 percent and 30.18 percent a week. This makes BNB priced at USD 263.55 per coin.

Then Cardano (ADA) is also still struggling in the red zone. In the last one day ADA weakened 12.49 percent and 42.34 percent a week. Thus, ADA is at USD 0.4546 per coin.

TRON Steps To Protect TRX. Meanwhile, Solana (SOL) is still weak this morning. Throughout the last one day SOL weakened 10.15 percent and 49.31 percent a week. Currently, the price of SOL is at the level of USD 42.65 per coin.

XRP is also still deeply corrected. In the past day, XRP fell 9.26 percent and 37.11 percent in the week. That way, XRP is now priced at USD 0.3745 per coin.

Terra (LUNA) weakened very deeply. Terra is down 99.14 percent in the last 24 hours and 99.99 percent in the week. Currently Terra is priced at USD 0.01064 per coin.

Stablecoin Tether (USDT) and USD coin (USDC), today both strengthened 0.08 percent and 0.05 percent, respectively. That way, USDT is at USD 0.9976 and USDC is at USD 1.00

Binance USD (BUSD) is down 0.06 percent in the last 24 hours. But the price is still holding at the level of USD 1.00 per coin.

While stablecoin Terra, Terra USD (UST) weakened 41.01 percent in the last 24 hours. Making the price drop at the level of USD 0.4571.

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