Sunday, June 23, 2024

Tron May Have a Solution for Sam Bankman-Fried’s Beleaguered FTX.

Justin Sun, the founder of Tron cryptocurrency network, believes they may have a remedy for the collapsed FTX crypto exchange. He provided no details but tweeted that he and his team were putting together a solution.

Sun said they have been working around the clock to avoid further deterioration. But he did not disclose any details. Sun coming to FTX’s aid doesn’t come as a surprise as he had Sam Bankman-Fried help to recently acquire Huobi Global.

Meanwhile, USDD the Tron network’s algorithmic stablecoin, dropped from its $1 peg to 97 cents as the beleaguered FTX shook investors’ confidence in broader crypto markets. Sun attributed USDD’s fall to Alameda Research, Sam Bankman-Fried’s trading firm, selling off its USDD holdings.

However, a Tron spokesperson said the USDD’s decline is not considered a depeg. The platform highlighted that Tron DAO set the acceptable level of fluctuation in USDD’s price to 3% under extremely volatile market conditions. USDD has a market capitalization of $725 million and is designed to keep its price stable at $1. Tron outlined that their stablecoin is supported by a combination of trading incentives and the storage of more crypto assets in the Tron DAO Reserve than USDD’s total value.

Sun’s gesture to help out FTX has gotten around and it momentarily sent Tron network’s native TRX token surging 4,000% – from 6cents to $2.5. The platform’s other tokens BTT, SUN, and JST spiked as well.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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