Cryptocurrency community doubts USDD stablecoin

Representatives of the cryptocurrency community continue to express their skepticism towards the Huobi cryptocurrency exchange and the USDD stablecoin that is used there. In their opinion, the peg to the USD may eventually weaken even more and fall to such indicators that it will not even be possible to draw a parallel with the definition of "stablecoin".

The main argument in favor of their correctness can be called the connection of the project with Justin Sun, who founded the Tron blockchain. Earlier, reporters received information that Sun bought a controlling stake in Huobi, but Justin denied this information. After that, the cryptocurrency exchange announced the arrival of the founder of Tron to their company as a chief advisor.

Previously, experts from analytics firm Nansen shared the results of a study they conducted on Huobi transactions. According to them, the last 24 hours have become difficult for the cryptocurrency platform, as clients have withdrawn funds in excess of $60,900,000.

This is 64% of what was withdrawn in the last week. In total, people have withdrawn more than $94,000,000 in the last 7 days, which can also be considered to some extent as skepticism towards USDD. It is noteworthy that the funds were withdrawn mainly in the two leading stablecoins, USDT and USDC, and the clients who wanted to withdraw funds were mainly large holders of their assets on the exchange.

The reason for such a sharp outflow of money from the exchange was the closing of the group through which customers could contact the staff and blocked the way in all channels through which Huobi representatives could ask a question. Such a strange and highly suspicious move made many investors think about changing the exchange to which they entrust their funds.

It is possible that it was after this that the colossal transaction involving BTC, which we talked about yesterday, was noticed. You can read about it in our material . In short: an unknown large bitcoin holder made a transfer from one wallet to another in the amount of 15,477 BTC, which at the time of the transfer was $260,827,576.

At the time of writing, USDD is valued at $0.974. In fact, the Huobi stablecoin can no longer be called a stablecoin, since the price has long dipped below the $1 mark. USDD experienced similar problems in mid-July, when at the moment the price fell to $0.938, but in August the token returned to the $1 mark.

The collapse of FTX created a new problem and in a couple of days USDD fell from $0.9971 to $0.97, after which it corrected slightly, but has continued to show a downward movement in recent months.

Earlier on Twitter, one of the experts claimed that almost all TRX tokens in the USDD reserve are not available. This may indicate that the provisioning ratio does not exceed the 50% mark. This is contrary to what the USDD.io service, which tracks information about the reserves of this stablecoin, testifies. USDD.io claims that the USDD overcollateral ratio is 200%.