The effect of the measures of the Securities and Exchange Commission against stablecoins does not seem to stop. In February, BUSD was the main stablecoin affected, then, in March, with the fall of Silicon Valley Bank, USDC momentarily lost its peg, as happened to DAI, and now it is USDD’s turn which has not yet recovered.
Added to these problems, Justin Sun, the founder of Tron, has been sued by the SEC for fraud and, as a side effect, USDD lost parity again and has yet to regain it.
In this way, the data shown by CoinMarketCap indicates that the cryptocurrency has not managed to recover parity with the US dollar. By the time of the Silicon Valley Bank crash, the stablecoin was trading at $0.9299and has been trying to regain its parity ever since.
However, the same data indicates that As news broke of the SEC’s lawsuit against Sun, the token has fallen 0.99931 to 0.98669which represents approximately 1.30%.
USDD Price in the Last 24 Hours – Source: TradingView
The metrics show how the USDD stablecoin has fallen, however, it should be noted that it is not the first time that USDD has lost parity, in fact, when the launch of this stablecoin was announced in May 2022, it was branded as a copy of the Terra coin and its algorithmic way of seeking parity with LUNA.
Comparative price of TRX and USDD in the last 90 days – Source: CoinMarketCap
The truth is Tron, the network on which USDD was developed, has been constantly growing, and the fall that it had due to the news of the SEC lawsuit against its founder, has already been corrected by the market, and the recovery has been important so far. In the comparative image of the USDD and TRX, you can see how Simultaneously both currencies fall due to the news of the bank failure and after the lawsuit that Justin Sun received by the Securities and Exchange Commission.
This would be the third stablecoin directly affected by the intervention of the United States authoritiesand we will have to wait and see if they continue to cause more havoc of this type in the crypto market.
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