Monday, December 5, 2022
HomeCrypto NewsMarketAfter Warning About FTX, Bitboy Says Do Not Buy Tron Stablecoin (USDD)

After Warning About FTX, Bitboy Says Do Not Buy Tron Stablecoin (USDD)

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Bitboy now has a helpful warning for market participants.



Crypto Youtuber Ben Armstrong, popularly known as Bitboy has warned through a tweet that staying in Tron’s stablecoin(USDD) isn’t a safe bet.

“GET OUT OF USDD NOW (TRX Stablecoin)

Justin Sun: I’m going to possibly buy FTX to save crypto

SBF: Retweets

Alameda under SBF direction: DUMP EEEET

USDD: Depegs”

This comes on the back of speculation that Alameda has been dumping the USDD to provide liquidity on the exchange after the native token of FTX had lost 90% of its value which caused the stablecoin to depeg. USDD native to the Tron Blockchain is trading at $0.98 at press time, down 1.10% in the last 24 hours.

It bears mentioning that Tron DAO Reserve, which is responsible for selling collateral to maintain USDD’s peg in the event of a sell-side shock as the custodian of its collateral, hadn’t been completely honest about their collateral ratio with most of it staked and earning yields in JustLend, the largest lending protocol in the Tron ecosystem by Total Value Locked, adding that the USDD’s collateral ratio could fluctuate further as its reserve assets, BTC and TRX, undergo price declines.

In simpler words, an almost 113% collateral ratio versus the 283% boasted by Tron DAO Reserve.

Bitboy in a more recent tweet, alleges SBF is making a last-ditch attempt to save the exchange with a threat to dump and depeg USDD unless Justin Sun throws support and liquidity behind the exchange.

Notably, as earlier reported by the Cryptobasic, bitboy was the first to nail it with Sam Bankman Fried; even before the news became public, he called out FTX’s CEO alleging he was about to ruin Crypto.

Notably, Chief Technology Officer at Ripple, David Schwartz shared a tweet reminding cryptocurrency Twitter that Bitboy “was warning us that SBF_FTX was the devil even before there was good reason to,” with some suggesting there might be a U-turn at ripple concerning Bitboy about his application to work there.

 

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Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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