TronDAO will start a 3 billion dollar withdrawal to protect TRX’s value.
TronDAO has declared that it will remove 3 billion TRX from a CeFi and DeFi lending platform. It did not, however, disclose the systems through which these withdrawals will be made. The foundation described the decision as an effort “to defend the overall blockchain sector and crypto market” in a tweet announcing the upcoming withdrawals. It previously issued a similar declaration in conjunction with an announcement to withdraw funds from Binance, as previously reported.
The imminent withdrawal is the latest in the DAO’s string of TRX withdrawals. It would bring the total withdrawals to 5 billion TRX in just two days if completed. The foundation declared on Wednesday that it had withdrawn 2 billion TRX from Binance. Analysts saw the withdrawals as a planned move to avoid a repeat of Terra’s UST failure in May. Short traders’ liquidity will be reduced as a result of the withdrawals, preventing a dramatic drop in TRX’s value. Along with the withdrawals, Justin Sun, Tron’s founder, has been attempting to calm fears of the community collapsing. However, as the crypto winter drags on, USDD and TRX continue to underperform.
Tron’s algorithmic stablecoin USDD has yet to achieve parity with the US dollar for the fourth day in a row. It is currently trading at $0.97, according to CoinGecko data. Despite allegations that it is over-collateralized, the USDD’s inability to peg back has fueled market speculation. Justin Sun, on the other hand, has guaranteed the community that Tron DAO will continue to infuse cash into the stablecoin in order to keep it overcollateralized. TRX, on the other hand, had a good day today after reaching a high of $0.064 but has since fallen. The price of the coin is currently $0.060, up 2.3 percent in the last 24 hours.