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.
Say what you want about @Bitboy_Crypto (and I certainly do), but he was warning us that @SBF_FTX was the devil before there was even any good reason to.
— David "JoelKatz" Schwartz (@JoelKatz) November 10, 2022
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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