Crypto exchange HTX is set to remove several trading pairs with USDD, advising users to cancel pending orders and choose alternative pairs.
Cryptocurrency exchange HTX (formerly Huobi) will delist several (USDD) trading pairs just a few weeks after concerns arose over the stablecoin’s backing and recent significant collateral withdrawals by the TRON DAO Reserve.
In a Sept. 9 press release, the trading platform said that on Sept. 12, it will remove 14 trading pairs, including DOGE/USDD, NEAR/USDD, USDD/USDC, and EOS/USDD, among others. The exchange advised users to cancel pending orders and transition to alternative trading pairs. Although the specific reasons for suspending the trading pairs were not disclosed, the exchange stated that the action is intended to offer a “better trading experience.”
lmao @justinsuntron silently removed the 12.000 btc as USDD collateral recently and it’s now 100% backed by tron (except for 20mil. usdt).
This was the address: 1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj
— Symbio (@NoCryptFish) August 21, 2024
The move comes amid ongoing concerns about USDD, particularly following big changes made by the TRON DAO Reserve. In late August, the reserve withdrew nearly $750 million worth of Bitcoin (BTC) backing USDD, leading to heightened scrutiny. Following the withdrawal, the stablecoin is now largely backed by TRX, TRON’s native token.
Regarding the decentralized stablecoin USDD, its mechanism is similar to MakerDAO’s DAI and is not mysterious. When your collateral exceeds the amount specified by the system (usually between 120%-150% depending on the vault), any collateral holder can withdraw any amount freely…
— H.E. Justin Sun🌞(hiring) (@justinsuntron) August 22, 2024
TRON founder Justin Sun defended the move, explaining that the previous collateralization rate of over 300% was not “very efficient.” He further assured users of USDD’s stability, highlighting that the stablecoin’s mechanism, similar to MakerDAO’s (DAI), allows for collateral withdrawals when it surpasses the system’s requirements.
Read more: Justin Sun holds $1.6b on HTX, exceeds half of exchange’s reserves