TronDAO has announced that it will withdraw an additional 3 billion TRX from its CeFi and DeFi lending platforms. However, I couldn’t name the platform on which these withdrawals would take place.
In Tweet The Foundation, which carried the imminent withdrawal notice, tagged the move as an act “to protect the entire blockchain industry and the crypto market.”
As reported yesterday, it made a similar statement with a previous announcement to withdraw from Binance.
Cryptocurrency winter protection
The imminent withdrawal follows a continuous series of DAO withdrawals from TRX. Once completed, you will need a total of 5 billion TRX withdrawals in just two days.
On Wednesday, the Foundation announced that it had withdrawn 2 billion TRX from Binance.
Analysts tagged the withdrawals with calculated movements in May to prevent Terra’s UST collapse from occurring as well. Withdrawal reduces the liquidity of short traders and avoids a sharp decline in the value of TRX.
Justin Sun, the founder of Tron, has sought to mitigate the potential for community collapse with the withdrawal. However, as the cryptocurrency winter prolongs, USDD and TRX will continue to underperform.
USDD remains depegged
For the fourth consecutive day, Stablecoin USDD by Tron’s algorithm is not yet equal to the US dollar. It is currently trading at $ 0.97, according to CoinGecko data.
Despite allegations that USDD is over-collateralized, the inability of USDD to peg back continues to fuel market speculation.
However, Justin Sun has assured the community that Tron DAO will continue to inject funds to ensure that Stablecoin remains over-collateralized.
TRX, on the other hand, showed positive performance today after peaking at $ 0.064, but has declined since then. Coins are currently trading at $ 0.060 and have increased by 2.3% in the last 24 hours.
