The founder of the renowned open-source blockchain-based operating system Tron, Justin Sun, has reportedly purchased TerraUSD (UST) via Curve Finance.
Justin Sun purchased 1M UST on Curve
Justin Sun said that he was buying UST, and data showed that his address starting with 0x8d7ea6a bought about 1 million UST on Curve. Justin Sun just launched USDD on TRON that imitates UST. https://t.co/bBc9z2jxr3
— Wu Blockchain (@WuBlockchain) May 8, 2022
Justin Sun’s purchase of UST follows an earlier Tweet in which he stated his intention to buy the stablecoin. Sun was asked what he was up to by Terra’s Do Kwon in response to the strange announcement. “I may have a secret plan,” Justin Sun replied.
I may have a secret plan😜
— H.E. Justin Sun 🅣🌞🇬🇩 (@justinsuntron) May 8, 2022
Justin Sun has still not revealed his plans for the UST he recently purchased. Members of the crypto-twitter community believe he will either utilize it as a reserve for Tron’s USDD stablecoin or commit the funds to a UST-USDD pool.
Sun’s secret plan came within hours of TerraUSD (UST) depegging as a result of a huge selling of the stablecoin on Curve and Binance.
Launch of USDD
As announced by Justin Sun, Tron has launched its own decentralized algorithmic stablecoin USDD, which is currently available on Ethereum and BNBChain. It promises to reward a basic “risk-free” interest rate of 30% to all users.
While the secret plan of the founder is still a secret, USDD is similar in almost every way to UST. Its price is closely pegged to that of the US dollar via Tron’s native token TRON and USDD. Like Luna Guard Foundation, Tron has also hinted at its intentions to keep $10 billion worth of Bitcoin and other cryptocurrencies in reserve to support USDD.