What currency is USDD? Is the USDD coin valuable?

USDD Coin: A controversial stablecoin

USDD Coin is a stablecoin issued by Justin Sun, the founder of TRON, and is claimed to be related to The US dollar is anchored 1:1. Launched on May 5, 2022, the stablecoin aims to provide a reliable payment and settlement tool for the TRON ecosystem.

USDD Coin Controversy

USDD Coin has been controversial since its launch. The main reasons are as follows:

• Lack of transparency: The issuance and operation of USDD Coin lack transparency. . The issuer did not disclose the collateral composition and audit information of USDD coins, raising concerns about its stability.
• Similar to algorithmic stablecoins: The stability mechanism of USDD currency is similar to algorithmic stablecoin TerraUSD (UST), both using algorithms to adjust supply and demand to maintain anchoring. The collapse of UST in May 2022 raised questions about the stability of the USDD coin.
• Over-issuance: The issuance of USDD coins has surged in a short period of time, raising concerns about its ability to maintain its peg. As of February 2023, the circulating supply of USDD coins has exceeded 20 billion US dollars.

The value of USDD coin

The value of USDD coin depends on whether it can maintain a 1:1 anchor with the US dollar. At present, the anchoring of USDD currency is relatively stable, but there are still certain risks.

If USDD coins lose their stability, their value will drop sharply, which may have a negative impact on the Tron ecosystem and investors holding USDD coins.

Conclusion

USDD coin is a controversial stablecoin whose value depends on whether it can maintain a 1:1 anchor with the US dollar. Investors should fully understand the risks before investing in USDD coins.

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