Tron crypto outperforms amid plan for decentralised stablecoin

THE Tron cryptocurrency outperformed on Friday (Apr 22), buoyed by a plan for a decentralised algorithmic stablecoin.

Tron's TRX gained 10 per cent in the past 24 hours as of 9.40 am in Hong Kong according to pricing data from CoinGecko, while most of the other top tokens such as Bitcoin and Ether were down slightly. TRX is now the 24th biggest crypto by market cap.

Tron is going to pool its resources to create USDD, a fully decentralised algorithmic stablecoin, founder Justin Sun said on his blog 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.

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 "decentralised economies deserve decentralised money". Both UST and Terra's LUNA token have seen significant market-cap gains amid the move to establish the Bitcoin reserves.

Still, the move could be seen as risky. While Terra's UST stablecoin now has an US$18 billion market cap and its LUNA token is in the top 10 by market value, many algorithmic stablecoins have hit messy barriers. The likes of Neutrino, IRON and Basis have lost their dollar pegs, some in spectacular fashion, after price declines in the stabilising token. BLOOMBERG