Post
Topic
Board Altcoin Discussion
Re: If USDD is "overcollaterized", why did it lose its peg?
by
Abiky
on 06/07/2022, 00:33:56 UTC
No, it cant hold for long, its printing money and do you really think that they will use their own money to bail out people if USDD value crashes?

If they're printing more USDD, then you can bet the stablecoin's peg will fall in no time. Tether did something similar a while ago, where it printed more units of the stablecoin for no reason. It raised alarms of getting de-pegged from the USD after "magically" inflating the coin's supply. Fortunately, Tether stopped doing such practice after the UST collapse.

I hope USDD doesn't take the same path as its counterpart (UST) or the crypto market will suffer. We need as much legitimate stablecoins as possible in order to attract as much investors into the crypto market. Regulators are paying close attention to the development of stablecoins, so it should only be a matter of time before the whole market is cleansed. Who knows what will be of USDD in the future? Just my thoughts Grin