Tron’s recently launched algorithmic stablecoin USDD has lost its dollar peg.
USDD slipped to a low of $0.9764 per CoinMarketCap data.
USDD is yet to recover its dollar peg, with its price hovering around $0.98.
According to Tron founder Justin Sun, USDD’s de-pegging happened because of large numbers of short sellers targeting TRX, the network’s native token, on crypto exchange Binance.
Justin added that the Tron DAO Reserve would pledge as much as $2 billion to fight the short sellers.
USDD is an algorithmic stablecoin, a type of cryptocurrency that is pegged to another asset (usually a fiat currency such as the U.S. dollar) using smart contract algorithms.