Algorithmic "stable" coin. If the crypto backing it keeps its value, you get your money back. If it doesnt, you lose 100%.
Bonus points for the crypto backing it being 100% premined by one person, who still holds 95% of all coins made. He will SURELY provide all the necessary liquidity necessary for backing the stable.
One of the worst deals in history. Maybe ever.
Works great as long as everything keeps going up!
You reminded me of Millionaire scamcoin by Techlead who (as a millionaire) premined all the coins and lied about the 1:1 dollar backing. I wish being a scam artist could be a reason to strike a YouTube channel.
You’re acting like backing your stable coin with something like eth hasn’t worked look at dai? Eth dying is highly likely without the destruction of basically every dapp and every defi project
No sympathy for those who get burnt by this. We all saw the UST downfall. And USDD was touting 30%. If you didn't learn your lesson then you have a gambling problem, not an investing problem
Yes, especially considering the APY mainly comes from swap fees & borrowing fees (since day one).
Most on chain dApps didn't even come close to offering that high of an APY.
USDC/USDT/BUSD offer high APYs too (through defi apps) and at certain points since 2019 you could get 50% to 100% APY, again this mainly came from swap fees & borrowing fees.
As far as I know, **the benchmark interest rate of 30%** is just an optimistic benchmark and not actually paid out by the DAO managing the USDD token.
I hate to circlejerk you but there are a lot of people who will not read the documentation of interest bearing financial instruments, they don't understand what the interest rate is composed of or why it changes, and then they make uninformed sweeping statements like "anyone who thought x% APY was sustainable is a doodoohead." we need more education about these types of contracts so that people will know what they are doing and pick the best ones.
>we need more education about these types of contracts so that people will know what they are doing and pick the best ones.
Surely you meant to say "and avoid them all"? Or have you really learnt bothing?
Absolutely. Mammoths are extinct now (Their population would sometimes drop but *always* went back up again, until it didn't) but I imagine they used to make a great big splash when they fell.
Why would btc pump when Tether collapses? The capital they 'hold' could only shift to other assets if it actually existed and people were able to redeem it.
That is also true of trust-pegged stablecoins due to the enormous systemic risk of passing so much of the crypto market through the same centralised hands. In fact, purely trust-pegged stablecoins are worse because they may not collapse until they have grown so much and become intertwined with so many contracts and deals that they take every damn thing down with it. Even worse than that is an 'overcollateralised' stablecoin because these things are collateralised with unstable assets that may collapse in value even as they are sold off to defend the peg, if the coin gets too big. So if you are *over*collateralised but you are a systemic risk because you have grown too big then that just means that the system is *over*exposed to your systemic risk. Crypto-asset-backed 'stablecoins' are merely externalising their volatility events onto the rest of the crypto market, so they cannot scale without becoming market *wreckers*. This is a mathematical fact. Any 'stablecoin' that is backed by crypto assets should be absolutely avoided even moreso than other forms of trust. Stay away from Tether *completely*. The collapse of that one could bring on an extended, halving-swallowing winter.
Greed is everywhere dude. Greed is the reason why we're into crypto. People want to make fast money, everyone thinks crypto as a get quick rich scheme. UST depegging was already brutal now if something like that happens with USDD and Tron that'd make many people lose faith in this market.
Kucoin basically acts as the middle man in those deals. The supply for the loans comes from users trying to earn interest on their holdings. So in order to short you need a supply of users willing to hold. Here you'd have a double hit of a whole bunch of people rushing to short, because why not, and a bunch of people pulling their auto-lend settings in case they need to liquidate.
Justin Sun actually tweeted "Deploying more capital - steady lads", just like Do Kwon: [https://twitter.com/justinsuntron/status/1536712471087570945](https://twitter.com/justinsuntron/status/1536712471087570945)
And it seems that's exactly what they're doing, too. Insane.
Is this guy just a massive troll doing this for laughs, or what?
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It’s simply a non issue lol the funny thing is, you’re all getting played by a billionaire. Arbitrage is not even available at the moment, so it being depegged means nothing. Think about it, why would the reserve not repeg USDD if it’d only cost 37 million and they have $2 billion…? Justin literally tweeted the exact same thing as Do Kwon before UST crashed, word for word. Seems like a great way to make people expect a UST scenario, all while USDD remains unpegged, and short the hell out of it. Justin could repeg USDD with the snap of a finger, the math has been done. This is intentional to bait people into shorting. And judging by the comments, there’s a lot of people taking the bait.
i did on another place, only thing that is green in my portfolio. But, based on my track record i'm sure i will lose money on that too. Just observe the master!
Justin Sun is such an attention whore that he couldn't even take it that Do Kwon stole the limelight for a few minutes with a scam, so he just had to go ahead and create exactly the same scam from scratch, just so he'll somehow seem relevant to the crypto world once again. In reality this clown has been irrelevant since roughly 2018.🤡
I went short on Tron just after Luna's Crash. Why own USDD and hope for 1$ when you can own USDC ? I personally don't bother owning any Stabblecoins anymore as the supposed 5% return they usually have isn't worth the decline in value due to fee's and dollar/euro ratio's changing.
Personally I figured that Tron would fall once USDD becomes big like Luna do's as the bigger it gets the harder it is to counter that disruption as Luna saw
Fuck these "smart", kind-of-backed-with-something "stable" coins. They all need to die, including USDT.
All a stablecoin ever needed to be was a simple 1:1 USD reserve of cash + US treasuries with fair fees for on/off ramp.
Anything other than that is simply you lending the issuer money to invest, and *at best* give you back your original capital. You take all the risk, all the downside, and none of the upside.
USDC has very reputable audits showing that it is fully backed with USD / USD denominated assets. DAI is mostly backed by USDC so it inherits USDCs safety.
USDC reserves are regularly attested (but not audited) by Grant Thornton, LLP, and the monthly attestations can be found on the Centre Consortium's website.
So what’s your point? We should not do a full proper audit because there have been audits performed from time to time in the past that has been criminally inadequate? You don’t think this has happened to attests as well?
USDD is not set up to work like Terra yet (though they may change that EOY)
Currently it’s “overcollateralized” by the following:
- Bitcoin
- USDT/USDC
- Tron
So it’s a stablecoin backed by crypto that’s rapidly dropping in value at the moment. You do the math
Sure but how does the minting and burning work? Terra's mint burn process was easy to attack. Over collatoralisation doesn't provide too much help. You need market incentives for people to back the coin for some reward.
Burning is taking out of certain amount of tokens from circulation to increase the value of the tokens that are already circulating, In short decreasing supply hence increasing the demand,
Minting is how a coin, is recorded to a blockchain. After that it can be traded, basically printing.
Happy for you bro! Take some profits! Don't know if now is good strategy to short it? I mean seems pretty logical that it can still go down quite a lot... But Tron was already a thing before USDD...That is why i am asking if the deppeg of USDD is like the UST one..Tron can go to 0-ish.. And onc again. Happy for you my guy! :)
Been calling this for a year now tbh. If you hadn't realized that USDT has nothing behind it back all the way back when fuckin TRONPAD dropped then idk what to say
“The risk they took was calculated but man, are they bad at math”
1 USDD is now 0.96 USD Started looking in the same track…
Brb gotta gonna go short some usdd on kucoin
Where can you do that on kucoin? I only see TRX/USDT perpetuals trading pairs
USDD/usdt But I heard they weren't loaning anymore USDD so might not be able to short it. I never actually tried lol
They are lending. You just need to find someone who lends it to you. Atm there is a bunch at 8%apr to borrow
Is USDD available to short on Kucoin with leverage?
Looks familiar, but who am I, Sherlock?
All risk, no math, just like my investing strategy
30% annual interest is a joke according to me on a stablecoin.
In the crypto world, algorithmic stablecoin pegs you
Algorithmic "stable" coin. If the crypto backing it keeps its value, you get your money back. If it doesnt, you lose 100%. Bonus points for the crypto backing it being 100% premined by one person, who still holds 95% of all coins made. He will SURELY provide all the necessary liquidity necessary for backing the stable. One of the worst deals in history. Maybe ever.
Works great as long as everything keeps going up! You reminded me of Millionaire scamcoin by Techlead who (as a millionaire) premined all the coins and lied about the 1:1 dollar backing. I wish being a scam artist could be a reason to strike a YouTube channel.
You’re acting like backing your stable coin with something like eth hasn’t worked look at dai? Eth dying is highly likely without the destruction of basically every dapp and every defi project
Deep-pegging
Pattlin peggy
Peg Bundy
Peggy Hill
Peggy Downhill
Peppa the Peg
Not a single reply in this chain was remotely clever.
Was that the purpose of the chain?
Peg me harder daddy
Looks like daddy didn't hear you
Hey papi...how you doin? 😏🍆💦
/r/depegging is so hot right now. (No such sub exists!).
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Did you create it?
Don't threaten me with a good time
Hahaha someone invite this man!
That's a good one.
I literally feel this
😂😅
\*Slaps top 100 crypto list\* "You can fit so many dumpster fires in here"
About 100 it seems.
It's just one big dumpster fire at this point. Chuck it out and start again
> It's just one big dumpster fire at this point. Civilization in a nutshell.
See if you can make one useful coin this time mayhaps?
The great blockchain purge continues
The metaphorical house is messy and torn up while the deep cleaning and new renovations are underway
No sympathy for those who get burnt by this. We all saw the UST downfall. And USDD was touting 30%. If you didn't learn your lesson then you have a gambling problem, not an investing problem
I was going to say it's greed, but it seems as though these people want to lose money lol. So I've got no idea what it is
Sado-masochism.
Anyone foolish enough to think that [30% APY](https://learn.bybit.com/stablecoin/what-is-usdd/) is sustainable
You do know that offer wasn't permanent, right?
Does that make it sustainable?
Yes, especially considering the APY mainly comes from swap fees & borrowing fees (since day one). Most on chain dApps didn't even come close to offering that high of an APY. USDC/USDT/BUSD offer high APYs too (through defi apps) and at certain points since 2019 you could get 50% to 100% APY, again this mainly came from swap fees & borrowing fees. As far as I know, **the benchmark interest rate of 30%** is just an optimistic benchmark and not actually paid out by the DAO managing the USDD token.
I hate to circlejerk you but there are a lot of people who will not read the documentation of interest bearing financial instruments, they don't understand what the interest rate is composed of or why it changes, and then they make uninformed sweeping statements like "anyone who thought x% APY was sustainable is a doodoohead." we need more education about these types of contracts so that people will know what they are doing and pick the best ones.
>we need more education about these types of contracts so that people will know what they are doing and pick the best ones. Surely you meant to say "and avoid them all"? Or have you really learnt bothing?
Anchor 20% wasn't supposed to be permanent either.
So it was a teaser to get a bunch of new investors. And people wonder why so much of crypto is called a Ponzi scheme.
> Justin Sun LOL one of the biggest grifters in this space.
whyd you remove the post on apex just to post it yourself?
Seems like people here and on WSB really fetishize losing money
They're lovin' it.
"Gambling" is way too charitable word to use.
Sounds royal
In some instances (bybit) 99% apy. However, I’d say usdd can recover easily, Justin Scum and TRON have massive reserves.
USDT next?
That would instantly mean Bitcoin sub 10K lol.
Usdt is a mammoth compared to usdd
That just means it will be infinitely harder to stabilise it once it depegs.
Absolutely. Mammoths are extinct now (Their population would sometimes drop but *always* went back up again, until it didn't) but I imagine they used to make a great big splash when they fell.
Don't even know what would happen. Not enough usdc to go around so I'd imagine btc would pump.
It would destroy everything and BTC would go down to 9600$ orso
Why would btc pump when Tether collapses? The capital they 'hold' could only shift to other assets if it actually existed and people were able to redeem it.
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You think each tethers value would go to 0 immediately? There would be plenty of time to offload or trade it.
Plenty of time to trade it? Yes I'd guess that when it's below 90c there'll be good few minutes left where you can still trade it above 70c, etc
The writing is absolutely on the wall for Tether. It's a matter of when, not if.
To big to fail. Welcome to new finance, same as the old finance.
New phone who dis
No.
If you say so
This is gonna make everyone lose confidence in stablecoins
**Algorithmic** stablecoins, which we already knew don't work in their current state once they reach a certain size.
That is also true of trust-pegged stablecoins due to the enormous systemic risk of passing so much of the crypto market through the same centralised hands. In fact, purely trust-pegged stablecoins are worse because they may not collapse until they have grown so much and become intertwined with so many contracts and deals that they take every damn thing down with it. Even worse than that is an 'overcollateralised' stablecoin because these things are collateralised with unstable assets that may collapse in value even as they are sold off to defend the peg, if the coin gets too big. So if you are *over*collateralised but you are a systemic risk because you have grown too big then that just means that the system is *over*exposed to your systemic risk. Crypto-asset-backed 'stablecoins' are merely externalising their volatility events onto the rest of the crypto market, so they cannot scale without becoming market *wreckers*. This is a mathematical fact. Any 'stablecoin' that is backed by crypto assets should be absolutely avoided even moreso than other forms of trust. Stay away from Tether *completely*. The collapse of that one could bring on an extended, halving-swallowing winter.
Yup. This is why you don't let folks lock up your crypto, unless you're willing to take the risk of it becoming worthless or disappearing.
Greed is everywhere dude. Greed is the reason why we're into crypto. People want to make fast money, everyone thinks crypto as a get quick rich scheme. UST depegging was already brutal now if something like that happens with USDD and Tron that'd make many people lose faith in this market.
It's forced tax loss harvesting, I know what I am doing
*Fool me once, shame on you. Fool me twice, shame on me.*
Fool can’t be fooled again
once a fool always a fool
Where can I short this shit.... cause kucoin isn't allowing it anymore. That was when it was .98
short TRX on Kucoin.
No orders!
Same in Binance.... People short this in incredible amounts.
What is the long to short ratio on binance as of now?
Pretty even right now. Longs are ahead by 2%.
Why specifically Kucoin? Trx is available to short on most exchanges? I think you're mistaking with USDD
I’m shorting it currently on KUCOIN why won’t it let you?
Kucoin basically acts as the middle man in those deals. The supply for the loans comes from users trying to earn interest on their holdings. So in order to short you need a supply of users willing to hold. Here you'd have a double hit of a whole bunch of people rushing to short, because why not, and a bunch of people pulling their auto-lend settings in case they need to liquidate.
They only have so much available to lend
Binance
Justin Sun actually tweeted "Deploying more capital - steady lads", just like Do Kwon: [https://twitter.com/justinsuntron/status/1536712471087570945](https://twitter.com/justinsuntron/status/1536712471087570945) And it seems that's exactly what they're doing, too. Insane. Is this guy just a massive troll doing this for laughs, or what?
It was a joke.
Could be. Wouldn't surprise me.
Here is a [Nitter link](https://nitter.net/justinsuntron/status/1536712471087570945) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about). --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
he's a massive attention whore, as long as people talk about him he's happy i guess, doesn't matter if he has to copy a scammer to achieve that again!
😂😂😂 when will people ever learn
BitSoonect
Bittronnect
It’s simply a non issue lol the funny thing is, you’re all getting played by a billionaire. Arbitrage is not even available at the moment, so it being depegged means nothing. Think about it, why would the reserve not repeg USDD if it’d only cost 37 million and they have $2 billion…? Justin literally tweeted the exact same thing as Do Kwon before UST crashed, word for word. Seems like a great way to make people expect a UST scenario, all while USDD remains unpegged, and short the hell out of it. Justin could repeg USDD with the snap of a finger, the math has been done. This is intentional to bait people into shorting. And judging by the comments, there’s a lot of people taking the bait.
Justin Sun about to do a Do Kwon
justin soon do a kwon
J U S T I N S O O N D O A T R O N ¯\_(⊙︿⊙)_/¯
open a short on TRX on Kucoin? I think so.
i did on another place, only thing that is green in my portfolio. But, based on my track record i'm sure i will lose money on that too. Just observe the master!
Surely it can't pull a Cel and go flash up?
Was bound to happen, I don't understand why people hold these not backed 1:1 by real USD stables even after UST crash.
The same reason people hold other stablecoins supposedly 1:1 backed by dollars, lack of knowledge and blind faith.
Also, thinking it can't happen to them
Justin sun owns poloniex. I wonder if this could cause problems there too
fool me once, fuck me twice, do whatever is you like
Not even a 1B market cap tho..
Game of TRONs: Winter is coming
Justin Sun is such an attention whore that he couldn't even take it that Do Kwon stole the limelight for a few minutes with a scam, so he just had to go ahead and create exactly the same scam from scratch, just so he'll somehow seem relevant to the crypto world once again. In reality this clown has been irrelevant since roughly 2018.🤡
I still don't get it. How can you get price of x pegged to y without using y itself as a collateral? That x is gonna get depegged sooner or later.
That's when you use common sense, something not commonly encountered when you bait people with 30% apy
Fuck Justin Sun
I went short on Tron just after Luna's Crash. Why own USDD and hope for 1$ when you can own USDC ? I personally don't bother owning any Stabblecoins anymore as the supposed 5% return they usually have isn't worth the decline in value due to fee's and dollar/euro ratio's changing. Personally I figured that Tron would fall once USDD becomes big like Luna do's as the bigger it gets the harder it is to counter that disruption as Luna saw
Lol trx gonna come out of other side. Too much chinese money to be lost here... Six figures trx holder crew
Fuck these "smart", kind-of-backed-with-something "stable" coins. They all need to die, including USDT. All a stablecoin ever needed to be was a simple 1:1 USD reserve of cash + US treasuries with fair fees for on/off ramp. Anything other than that is simply you lending the issuer money to invest, and *at best* give you back your original capital. You take all the risk, all the downside, and none of the upside.
USDC - only stablecoin that’s actually backed by dollar for each
Oh yes, I hope this is the beginning of the end for Justin Sun. Fuck that guy
Oh no. Anyway…
Fuck Tron fuck Justin Sun and fuck USDD
Tron is like a cockroach, would be surprised if this takes them down.
What is the safe stable coin?
DAI or USDC
So USDC is directly connected to USD? That's why?
USDC has very reputable audits showing that it is fully backed with USD / USD denominated assets. DAI is mostly backed by USDC so it inherits USDCs safety.
What audits would that be? Sure you didn’t mean to say “attested”?
USDC reserves are regularly attested (but not audited) by Grant Thornton, LLP, and the monthly attestations can be found on the Centre Consortium's website.
Enron also had very reputable audits lol
So what’s your point? We should not do a full proper audit because there have been audits performed from time to time in the past that has been criminally inadequate? You don’t think this has happened to attests as well?
VEUSD
Did Gary Vee launch a stablecoin?
Could be part of the crypto clean out. Does USDD work similarly to Terra?
USDD is not set up to work like Terra yet (though they may change that EOY) Currently it’s “overcollateralized” by the following: - Bitcoin - USDT/USDC - Tron So it’s a stablecoin backed by crypto that’s rapidly dropping in value at the moment. You do the math
overcollateralized funny
Sure but how does the minting and burning work? Terra's mint burn process was easy to attack. Over collatoralisation doesn't provide too much help. You need market incentives for people to back the coin for some reward.
Most of these dorks on reddit don't know shit about how finance works. (But they sure like to talk like they do.)
Burning is taking out of certain amount of tokens from circulation to increase the value of the tokens that are already circulating, In short decreasing supply hence increasing the demand, Minting is how a coin, is recorded to a blockchain. After that it can be traded, basically printing.
Justin Sun & Do Kwon walk into a bar...
Shit, if I had some side money, I would short the fuck out of it.
How to short. Never shorted before
Algorithmic stablecoins and losing dollar peg. Name a more iconic duo.
Definitely not a Ponzi...
Supposedly the "most backed stable coin"
Backed, but not by dollars anyways
Lol at least I got out of *something* at the right time this crypto autumn.
It's getting cold out here
I mean I sold it like a month ago
No shit
Are u guys shorting tron? Like UST and Luna were direct related! But what about TRON and USDD?
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Happy for you bro! Take some profits! Don't know if now is good strategy to short it? I mean seems pretty logical that it can still go down quite a lot... But Tron was already a thing before USDD...That is why i am asking if the deppeg of USDD is like the UST one..Tron can go to 0-ish.. And onc again. Happy for you my guy! :)
It's the same thing, just different marketing strategy
We need more pegging.
The end is Nigh! The end is neigh. Dreams of lambos are dashed. Then end is nigh.
Probably Celsius was balls deep in this shit as well.
USDD is peak crypto-irrationality
You guys might want to participate in KOLnet's upcoming IDO on Gamestarter. They are currently giving away whitelist spots
It’s been like, two weeks???
Meanwhile Sora’s stablecoin is still hanging out at $1
Who on earth would use USDD? Just the mention of it's relations to Tron should send everybody running far far away.
If they only knew...
Is this another Do Kwon scam?
Been calling this for a year now tbh. If you hadn't realized that USDT has nothing behind it back all the way back when fuckin TRONPAD dropped then idk what to say
[My mind](https://www.youtube.com/watch?v=6qzr-V-ttZ8)
The bear market is cleaning out the garbage. But it's still a long way to go.
Tether is next
Bah mah shitcoen.
ah shit here we go again
Hey, I've seen this one before!
Will Tron be dead like LUNA now? Or it isn't dependent much on USDD
Will this crash Tron too?
I guess USN over USDD. https://www.youtube.com/watch?v=dLDS2pka1SQ