The global digital asset is struggling to keep up due to recent events like the collapse of Sam Bankman-Fried (SBF)’s FTX crypto exchange and FTT token. However, Justin Sun and his TRON ecosystem tokens are facing similar challenges in the crypto winter.
Justin Sun’s TRX down by 8%
As per the data, Justin Sun’s Tron USDD Stablecoin is de-pegging heavily and it could be in the process of collapsing. USDD which is meant to trade at $1 is now valued at $0.976, at the press time. It is almost 5% down from its fixed value.
However, its 24 hour trading volume is up by a whopping 226% to stand at $31.4 billion. USDD is holding a market cap of around $709 million.
TRON (TRX) has taken a massive hit as its price has dropped by a major 8% in the last 24 hours. TRX is trading at an average price of $0.0507, at the press time. While its 24 hour trading volume has surged by a massive 167% to stand at $441.7 million.
Why USDD can collapse ahead?
Reports suggest that Justin Sun’s Huobi Global closed the communication group with internal employees. It also blocked all communication and feedback channels with the staff. This move comes after Huobi forced employees to accept payments in crypto.
Coingape reported that Justin Sun has confirmed 20% of staff layoff at Huobi global citing crypto winter. Huobi token price has already down by around 9% in the last 24 hours. HT’s 24 hour trading volume is also down by 23%.
It is expected that the internal employees can become rebels and rug away users’ assets or can add a backdoor Trojan horse. These possibilities cannot be ruled out as such incidents have occurred on several exchanges over the past years.
Huobi’s shadow owner, Justin Sun has been on the run of sending billions of dollars of stablecoins around the space. He has been caught transferring funds in and out of Binance.
The post Tron’s USDD Stablecoin Depegs, TRX Drops By 8%; Here’s Why appeared first on CoinGape.