TRON DAO Pulls 2.5 billion TRX From Binance To Protect USDD Peg
The TRON DAO plans to withdraw $125 million worth of TRON (TRX) tokens from Binance, likely to strengthen safeguard against short sellers.
The TRON DAO Reserve has revealed plans to pull 2.5 billion TRON (TRX) tokens, worth about $125 million, from the Binance exchange as it attempts to prop up the price of its USDD stablecoin against the US dollar.
TRON DAO Reserve announced the move on Twitter as USDD fell as low as $0.958. The price had rebounded to $0.972 as of 5:55 a.m. ET.
To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will withdraw 2.5 billion #TRX out of binance.
With the withdrawal of $125 million worth of TRX from Binance, the Tron DAO might attempt to limit the ability of short sellers to open up positions to bet against the token. TRX is currently down 16% in the last 24 hours and could see further downside given the existing market conditions.
The price of LUNA crashed during the TerraUSD (UST) depegging event in May. Like luna, TRX is used to redeem USDD holders if the stabelcoin’s price falls below $1.
The TRON DAO has previously deployed $2 billion from its treasury to fight short sellers.
