Friday, justin sun deposited $100 million worth of stablecoins in huobi exchange as a show of confidence. this action was accompanied by clients of huobi withdrawing $60.9 million from the exchange over a 24-hour period, and huobi cutting staff by 20%. the pace of withdrawals from huobi slowed on sunday, with weekly withdrawals edging down to $84 million from $94.2 million on friday.
Price of tron’s usdd had wavered between $0.983 and $0.972 within the past week, and had not been valued at $1 in over a month. usdd slipped below $1 on june 12 of last year and didn’t make a full recovery in price until july 26. over the past 14 days, usdd’s market capitalization had fallen by $6.5 million to $709 million, while tether and usd coin have market capitalizations of $66.3 billion and $43.9 billion, respectively.
Usdd is an algorithmic stablecoin. algorithmic stablecoins came under public scrutiny last year when terra’s stablecoin, ust, suddenly collapsed and wiped away $40 billion in value. according to andrew thurman, a simian psychometric enhancement technician at nansen, the primary driver of algorithmic stablecoins’ peg is often faith from the community. if enough people lose faith in the peg, they will opt to swap their algo stables at a haircut rate, driving the asset further off-peg. nansen’s analysis of the ust collapse was tipped by the collective loss of faith from so-called whales.