According to Justin Sun, the market capitalization of USDD, the stablecoin on the Tron (TRX) blockchain, is only $270 million. He added that Tron will have no trouble fending off speculative attacks given its capitalization and reserves.
Tron is performing far better than most
At the time of writing, TRX traded at $0.07, having fallen just 4.27% in value. By comparison, most cryptocurrencies in the top 100 by market capitalization lost 20–30% in the past 24 hours, a severe decline. Some fell as much as 40%.
It remains unclear whether Sun’s optimism will be justified over the long term, but his remarks did not go unnoticed by industry experts. Dyma Budorin, founder and CEO of Hacken, commented:
“That kind of statement is typical of Justin — he never misses a newsbreak, which can help draw attention. I’ll note that in the early days of the war he posted a screenshot on Twitter of a conversation with a representative of the Russian Federation about using TRX if the Russian Federation were disconnected from SWIFT.”
Kostiantyn Oleshko, product owner at CER.live, added:
“In a falling market, all algorithmic stablecoins are at risk. We recommend diversifying your stablecoin holdings to minimize any potential exposure.”
About Kostiantyn Oleshko: Kostiantyn holds a master’s degree in applied cryptography and has more than six years of experience in the blockchain industry. He worked as a project manager on several crypto initiatives, including entities associated with the National Bank of Ukraine that worked on the e-hryvnia, Ukraine’s CBDC. He firmly believes that security is the key to mainstream cryptocurrency adoption.
About Dyma Budorin: Dyma is a blockchain economy influencer who actively supports the development of the virtual asset market in Ukraine in collaboration with the Ministry of Digital Transformation of Ukraine. In 2021 he was recognized among the top 55 Ukrainian IT entrepreneurs by prominent news outlets.