The decentralised autonomous organisation behind the USDD and TRON network, TRON DAO has bought 500 bitcoins and 600M TRX to add to its Reserve.
The bitcoins were bought at an average price of $31,000, thus the organisation spent a total of $15 million.
The DAO also bought 600 million TRX, its own native cryptocurrency. The total amount spent on buying the TRX was around $45 million.
The DAO bought these bitcoins just after El Salvador’s President tweeted that the country bought 500 bitcoins. Justin Sun, the founder of TRON, tweeted that TRON DAO’s move echoes the actions of the President.
USDD is a stablecoin launched by TRON DAO just a few days ago. The coin is pegged to the Bitcoin and TRX. This could be a questionable way to hold a stable peg to the dollar as the market has already seen an unpleasant affair with Terra.
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Currently, there are 255 million USDD in circulation as the DAO keeps accumulating reserves to back the stablecoin. By backing an asset with a large collateral, an issuer can control its supply and manage its market price.
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