The Tron cryptocurrency outperformed on Friday, amid plans for a decentralized algorithmic stablecoin. Tron’s TRX gained 10% in the past 24 hours according to pricing data from CoinGecko. TRX is now the 24th biggest crypto by market cap.
The cryptocurrency outperformed while popular tokens Bitcoin, ether, dogecoin were trading with cuts. The global crypto market’s value today fell over 2% in the past 24 hours to $1.98 trillion, as per CoinGecko.
Tron network founder Justin Sun announced that the network would be launching a new decentralized algorithmic stablecoin called USDD. “Tron is going to pool its resources to create USDD, a fully decentralized algorithmic stablecoin,” Sun said on his blog on Thursday.
USDD will be pegged to TRX and is scheduled to be issued and enter circulation on Tron May 5, he said, adding that it will also be available on Ethereum and BNB Chain through the BTTC cross-chain protocol.
Sun said that the USDD Network will “provide custody service for the $10 [billion] worth of highly liquid assets raised from blockchain industry initiators and use them as an early-stage reserve.” The TRON network was founded by H.E. Justin Sun in September 2017 with an aim to accelerate the decentralization of the Internet via blockchain technology and decentralized applications (DApps).
Do Kwon, who has led a group buying up chunks of Bitcoin as reserves for the UST stablecoin, welcomed Tron’s move, saying on Twitter that “decentralized economies deserve decentralized money.” Both UST and Terra’s LUNA token have seen significant market-cap gains amid the move to establish the Bitcoin reserves.
(With inputs from Bloomberg)