South Korean Exchange Upbit Warns Users About Tron Fluctuation After USDD De-Peg
South Korean crypto trading platforms are no longer taking chances after the Terra incident.
A lot of lessons were learned following the de-peg of TerraUSD (UST), the algorithmic stablecoin of the Terra ecosystem, which wreaked havoc on the entire cryptocurrency market as the value of the entire crypto market plummeted massively.
Following the incident, cryptocurrency players have been looking for possible scenarios to prevent a recurrence of the Terra saga.
According to a blog post published by a top South Korean cryptocurrency exchange Upbit, investors of the trading platform were warned to exercise caution and be observant after Tron algorithmic stablecoin, USDD, lost its peg to the dollar.
“Currently, there is a concern that the pegging of USDD is not going well. As a result, the possibility of price fluctuations of WAVES and TRON (TRX) associated with each of the above stablecoins may increase, so please be careful about investing in WAVES and TRON (TRX),” Upbit said in a statement today.
$USDD De-Peg Affected Tron Projects
Meanwhile, the de-peg of USDD has resulted in the price fluctuations of TRX, which has crashed over 15% in the last 24 hours, at the time of writing.
Over the last 24 hours, USDD lost its peg to the dollar as it crashed to a low of $0.974. The incident also led to the dip of TRX, which fell to a low of $0.058 from $0.079.
In a similar development, the plunge of Tron ecosystem tokens TRX and USD also crashed the total value locked (TVL) across various decentralized finance (DeFi) protocols on the Tron Network.
Moments after USDD lost its peg, the TVL on the various protocols hosted on the Tron network dipped from $5.73 billion to $4.68 billion in the last 24 hours.
The development has continued to spread panic in the cryptocurrency community, thus leading to widespread investor capitulation.
Moves to Prevent Tron from Crashing Like Terra
The Tron Foundation team is not leaving anything to chance as it is making significant moves to prevent the Terra incident from happening to its project. The team has deployed funds from its Decentralized Autonomous Organization (DAO) reserve to shield investors from losses.
So far, a total of $2.5 billion has been injected from the Tron DAO reserve to maintain the USDD peg to the dollar. At press time, the stablecoin is trading around $0.98, representing a 0.3% decline in the last 24 hours.
Meanwhile, Korean exchanges are teaming up to prevent a recurrence of the Terra incident. According to a YNA report, leading Korean exchanges, including Bithumb, Upbit, Korbit, Coinone, and Gopax are considering developing stringent measures that will determine the criteria digital currencies will undergo before getting listed.