The YouTuber Coffeezilla recently became popular after he unveiled the Safemoon scam orchestrated by its founders, and now he claims via his investigation that Tron’s USDD is a scam. This is major news as the stablecoin USDD even lost its dollar peg recently. Now, it is essential to take this investigation by Coffeezilla seriously because USDD’s design is very similar to UST, which is also an algorithmic stablecoin.
Is Tron’s USDD a scam?
Most of the time, what makes a crypto project good or bad are the people behind it. USDD is founded by Justin Sun, who is not well-known for his reputation. Coffeezilla pointed out that Justin has fled many countries to avoid punishment, and there have also been reports of them engaging in insider trading. It isn’t easy to trust such a person as well as their project.
The USDD stablecoin was launched just before UST crashed. Even though they both look similar, Justin says UST’s crash was caused by the huge leverage and quick development of UST. They plan to avoid these errors making USDD a safe bet. Still, after that, the stablecoin lost its dollar peg as the markets got a little volatile.
The problems
Coffeezilla has pointed out some crucial things that we must note when evaluating USDD. First of all, even though USDD claims to be an algorithmic stablecoin, it is not. That’s because, in such a coin, the price is managed by burning and minting of coins which is…
