As USDD continues to perform below the $1 peg, there is talk of whether or not any risk is involved for the investors. After losing the dollar peg on June 13, Justin Sun USDD has since then fallen to a low of $0.93 before regaining the $0.98 level.
As of writing, USDD is trading at $0.978, up 0.35% in the last 24 hours, according to CoinMarketCap. In terms of market cap, the stablecoin had a market cap of $723 million before the depegging began on June 13. After losing the market size for a few days, the current market cap stands at $704 million having fallen below $700 earlier.
Are Trader Funds Safe?
Although it is claimed that the USDD is a decentralized algorithmic stablecoin, many argue that it is actually centralized. Unlike other stablecoins like UST, minting the USDD is an exclusive affair. Only a few whitelisted institutions are allowed to mint new USDD, which is by burning Tron’s TRX.
Meanwhile, YouTube Coffeezilla hinted that the collateral assets are probably stored in a wallet belonging to Justin Sun.
“It is unclear whether these assets will actually be deployed, and the BTC wallet they have is over 2 years old, suggesting this isn’t a new DAO wallet but possibly just a Justin Sun BTC wallet.”
