Tron Launches USDD 2.0 With 20% APY
Justin Sun announced today that Tron will be launched soon dollar to dollar 2.0, try to create a refreshed version of the previous version Stablecoin.
Sun promises that the asset will provide users with 20% revenue average annual outputfully subsidized by Tron, which has “a lot of money.” The skeptical community remains wary of the company’s previous failures, such as USDD 1.0.
Tron launches USDD 2.0 and makes lofty promises
Justin Sun, Founder and former CEO of Tronannouncing USDD 2.0 via social media. Although the company try to take precautions With the first incarnation of this stablecoin, it subsequently failed and was Removed from major exchanges.
Back in 2022, USDD offered an annual interest rate of 30%, which was later reduced due to market challenges. The most recent time was in August last year, when Tron DAO Reserve withdrew approximately 12,000 Bitcoin from USDD’s collateral without prior approval from its DAO.
This move mainly shifts the support of stablecoins to Tron’s native token. TRXraising concerns about asset stability and transparency.
On top of that, stablecoins have lost their peg to the U.S. dollar multiple times over the past two years. USDD still serves as A cautionary tale about Sun’s failure In the community. Therefore, there is nothing wrong with the community questioning this new project. Still, the company is trying again.
“USDD 2.0 is coming soon, with an annual interest rate of 20%, fully subsidized by Tron. All interest will be sent to a transparent address in advance. For no other reason than because we have enough money. So, stop asking me ‘where will the proceeds come from’ “Come on,” said Sun.
To be fair, the idea of 20% annual interest rates on these stablecoins is concerning. Sun undoubtedly controls significant capital resources; He invested $30 million Enter Trump’s World of Free Finance in late November. However, if Tron pays out USDD to users from its own cash reserves, it’s unclear how the company would actually make a profit.
Tron’s native token TRX hits all-time high about a month ago but it volatility Might not be enough to sustainably support stablecoins. In fact, TRX has experienced a steady decline In the weeks that followed, though, dedicated investors showed resilience.
In other words, potential investors have a lot of questions before trusting Tron to rebuild USDD. Regardless of whether the company has enough money to subsidize the launch, it can’t commit money to the project forever.
At some point, a company will need to truly benefit from an offer that seems too good to be true.
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