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USDD Depeg warning to everyone shorting

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by COINS NEWS 144 Views

Please read the whitepaper

source: https://usdd.io/USDD-en.pdf

I know many people are thinking of shorting USDD and TRX because they believe an inevitable death spiral will occur with the USDD depeg. However, the USDD decentralised network is currently NOT LIVE. This means that the burn/mint mechanism is not available. Currently, all USDD is being released and managed by Tron. Only Tron has the capability to burn USDD to mint TRX. They will not hyper inflate TRX to save USDD. They will likely let USDD die like how Do Kwon turned off the burn/mint mechanism and let UST reach 0.01.

Tl;Dr Do not short TRX expecting a death spiral. It is currently impossible.

submitted by /u/Pseudonymous100419
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