(Twitter) Tron DAO Reserves announced, on Wednesday, the withdrawal of 2.5 billion TRX tokens from Binance amid ongoing concerns over the depeg of USDD.
The DAO said that the withdrawal was meant to safeguard the overall blockchain industry and crypto market.
Taking the tokens off exchanges was meant to prevent traders from taking large short positions that would destabilize the asset. It also allows the DAO to maintain its reserves of TRX tokens, sufficient enough to redeem USDD holders.
The announcement came when the DAO’s algorithmic stablecoin, which is believed to be a carbon copy of collapsed UST, dipped to below $0.96 on Wednesday. Tron’s native token TRX dropped more than 6% in the last 24 hours.
Tron has made similar moves to protect its USDD stablecoin. It recently announced the purchase of more than 1 billion USDC, besides announcing it holds $500 million worth of assets in Bitcoin, UST, and Tron.
TRXUSD is down -2.52%.
