The crypto market has been in the limelight due to the falling prices of cryptos and industry players filing for bankruptcy. However, Justin Sun claims that his company takes clients’ data and money seriously and has developed a stablecoin, USDD, to facilitate this.
A stablecoin is one of the popular cryptocurrencies but its price is pegged to a different asset, such as the U.S dollar, to ensure its stability. Justin Sun’s USDD operates on the same criterion. While the USDD Sun launched the USDD a few days before a similar stablecoin, terraUSD (UST), collapsed, he claims that USDD is secure.
Justin Sun assured people that a similar collapse would occur in the case of USDD. He supported these claims by citing its slow growth model. Sun also pointed out the stablecoin’s transparency, allowing users to know every detail about it. In addition, the website allows users to check the collateralized rates and reserves backing the USDD to ensure security.
Talking about USDD security, Justin said he uses his funds whenever necessary to keep the peg stable. In addition, the stablecoin has a trading volume of approximately $76.5 million and a market cap of $739 million. These factors make it less fragile than the UST, which had a trading volume of $100 million and a market cap of $18 million at its collapse.
The market cap and trading volume made it highly fragile and susceptible to collapse. Sun said his company would increase the USDD’s market cap based on its adoption and trading volume. The gradual increase would play an important role in facilitating its stability by making it less fragile than the UST.
Justin Sun believes in adopting stablecoins as the future of cryptocurrency due to their stability. He also points out their many uses other than trading. Sun claims that stablecoins act as a reliable payment method and plans to work his best to push the agenda.