(Bloomberg) -- The Tron cryptocurrency outperformed on Friday, buoyed by a plan for a decentralized algorithmic stablecoin.
Tron's TRX gained 10% in the past 24 hours as of 9:40 a.m. 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 decentralized 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 “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.
Read more: Bitcoin's Most-Watched Whale Is the King of the ‘Lunatics'
Still, the move could be seen as risky. While Terra's UST stablecoin now has an $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 stabilizing token.
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
