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Justin Sun Breaks Silence on USDD Backing and Bold 20% Yield

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7 hours ago

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Tron founder Justin Sun recently announced the launch of USDD 2.0, an updated version of the algorithmic stablecoin, offering a 20% annual percentage yield (APY). Sun addressed inquiries about the yield’s source, stating that it is entirely subsidized by the Tron DAO.

Justin Sun Announces USDD 2.0 with 20% Yield Backed by Tron DAO Reserves

In a recent post on X, Tron founder Justin Sun unveiled USDD 2.0, the next iteration of the decentralized stablecoin launched in 2022. The updated version promises a 20% APY, fully subsidized by the Tron DAO. Sun clarified that the yield will be distributed in advance to a publicly visible address to ensure transparency.

More so, Justin Sun addressed concerns regarding the origin of the high yield. The Tron founder stated 

“It’s simply because we have plenty of money. So, stop asking me questions like, where does the yield come from?”

Sun emphasized that the funding comes directly from the Tron DAO’s reserves, alleviating skepticism about the sustainability of such returns.

Notably, stablecoin adoption has been gaining momentum across major exchanges. In a recent report, the newly launched Ripple stablecoin, RLUSD, has debuted on Bitstamp, offering trading pairs with USD, EUR, BTC, ETH, XRP, and USDT

USDD Backing and Collateralization Details

USDD 2.0, like its predecessor, is backed primarily by Tron’s native token, TRX, alongside other digital assets. According to official statements, the stablecoin maintains a collateralization ratio of 120%, with $2.6 billion in reserves supporting its $747 million circulating supply. These reserves include TRX and USDT, among other assets.

The stablecoin’s website claims that its over-collateralization model ensures stability and resilience. However, critics like Bluechip have raised concerns about its reliance on TRX and the absence of proper governance.

Despite criticism, the growing stablecoin adoption has led Circle to partner with Bison Digital Assets to expand MiCA-compliant USDC and EURC stablecoins in the EU.

Comparisons With Other Stablecoin Yields And Market Outlook

The 20% APY offered by USDD 2.0 positions it among the highest-yielding stablecoins in the market. Other competitors, such as DAI on the Spark Protocol, offer a 12% APY, while USDC provides a more modest 4.1% APY for Coinbase Wallet users. 

However, high-yield stablecoins have historically faced scrutiny due to risks associated with their mechanisms, as seen in the collapse of Terra’s UST in 2022. Despite these risks, Justin Sun and the Tron DAO are optimistic about the future of USDD 2.0.

More so, the stablecoin market, dominated by giants like USDT and USDC, holds a combined value of over $215 billion, with algorithmic and crypto-backed stablecoins comprising $13 billion. While USDD has carved out a niche, its $747 million market cap remains modest compared to its larger peers.

Following Justin Sun’s recent announcement of strategic developments, TRON (TRX) price has surged by 6.25% to $0.2351. The market cap now stands at $20.25 billion, with trading volume spiking by 35% to $841.65 million in 24 hours. 

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Thailand Boosts Crypto Ambitions, Welcomes Bitcoin ETFs on Local Exchanges

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23 hours ago

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January 15, 2025

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Thailand is witnessing a significant breakthrough in its ambitious vision to establish a digital asset hub. A recent report on Wednesday revealed Thailand’s plans to adopt Bitcoin ETFs, permitting local exchanges to list the exchange-traded funds.

Thailand Prepares for Bitcoin ETF Debut

The Thai Securities and Exchange Commission (SEC) plans to approve its first Bitcoin ETF, aligning with the country’s crypto hub vision, Bloomberg reported on January 15.

SEC Secretary-General Pornanong Budsaratragoon posited that the move would allow individual and institutional investors to invest in the Bitcoin vehicles directly.

Promoting the use of cryptocurrencies, Thailand is paving the way for the worldwide adoption of digital assets. During an interview on Tuesday, Pornanong stated,

Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.

Although, One Asset Management in Thailand has introduced a fund-of-fund tracking international Bitcoin ETFs, a direct investment tool remains pending approval. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) and was approved by the Thai SEC last year.

Thailand’s Thaksin To Legalize Crypto

The latest development came on the heels of Pheu Thai Party leader Thaksin Shinawatra’s efforts to legalize crypto. Citing the incoming US President Donald Trump’s crypto-friendly approach, Thaksin suggested Thailand embrace a more progressive stance on virtual assets. He also proposed the increased issuance and use of stablecoins.

Digital-asset trading activity in Thailand is picking up amid a wider rally that pushed Bitcoin to a record high of $108,315. Crypto hedge funds had a great last year but failed to give more returns than Bitcoin (BTC), as per Bloomberg

Thailand’s Broader Crypto Vision and Regulations

Thailand has long been striving to solidify its position at the forefront of the global crypto market. In a recent development, the country announced its crypto payment pilot project, with the trial set in Phuket.

While the initiative is expected to be executed within Thailand’s existing legal framework, it bolsters the nation’s crypto vision. The country is broadly looking to boost crypto adoption and Bitcoin ETFs will be welcome move for the local crypto industry.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Delays Decision on Bitwise 10 Crypto Index Fund

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1 day ago

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January 14, 2025

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The US Securities and Exchange Commission (SEC) has delayed its decision on whether or not it will approve the Bitwise 10 Crypto Index Fund. This decision comes just 6 days before Gary Gensler, the Chairman of the commission leaves the agency. Per the filing from the commission, this delay is not denial as it requires more time to consider the application.

The Bitwise 10 Crypto Index Fund Still Possible

According to the notice shared by the markets regulator, it chose to delay the approval or denial of this filing considering the key factors it has to consider. From the time the asset manager filed the Bitwise 10 Crypto Index Fund, the US SEC had an obligation by law to give its consideration within 45 days.

The markets regulator filed the decision to delay this proposed rule change three days before the January 17 deadline. Following this delay, the US SEC said it has now fixed at March 3, 2025 as the next tentative date to give its decision on the filing.

This is a breaking news, please check back for updates!!!

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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How Coinbase vs SEC Ruling Could Influence XRP Case

Published

2 days ago

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January 14, 2025

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After the Court of Appeals for the Third Circuit’s ruling partially in favor of Coinbase in its rulemaking petition lawsuit with the US Securities and Exchange Commission (SEC), lawyers tracking Ripple vs SEC lawsuit debate over precedent and clear crypto regulations.

The buzz is around another loss for SEC Chair Gary Gensler as another court states the US SEC’s actions in crypto-related lawsuits as “arbitrary and capricious.”

Pro-XRP Lawyers’ View on Implications for Ripple vs SEC Lawsuit

The United States Court of Appeals for the Third Circuit ruled that the SEC was unjustified in its denial of Coinbase’s rulemaking petition. Appellate court judges asked the regulator to provide a clear explanation of rules and guidelines that indicate digital assets are securities and with reasons.

Lawyer James Murphy, aka MetaLawMan, asserts the US SEC should hold off on any crypto rulemaking until the US Congress passes a market structure bill, clearing out the legal distinction between digital asset commodities and securities.

Lawyer Fred Rispoli reacted to Coinbase CLO Paul Grewal’s post “We just won our petition for a writ of mandamus at the Third Circuit.” Rispoli said Coinbase has lost almost every argument and the company’s only win was the court asked the SEC to provide sufficient reason for denying the petition.

However, he added that phenomenal concurrence by Judge Bibas is exactly what has appealed for in the 2nd Circuit Court. The statement focuses on how old rules from a century ago work for crypto. It reads:

“As I explain, its old regulations fit poorly with this new technology, and its enforcement strategy raises constitutional notice concerns.”

Fred Rispoli believes if the 2nd Circuit Court of Appeals decides to adopt this line of reasoning, then “SEC is done for good with crypto.” It means the court may also slam the SEC and may dismiss or extend the appeal as it reveals that the SEC failed to regulate in good faith.

SEC v CoinbaseSEC v Coinbase
Source: Fred Rispoli

Ex-SEC Lawyer’s Insights in Relation to XRP Case

Former SEC lawyer James Farrell revealed that the court ruled that any of the 3 rationales offered by the US SEC might suffice. These are “no need for rulemaking; want more info before rulemaking; or other resource priorities. But SEC had to pick 1 or more and spell out the why.”

He agreed that Judge Bibas’ concurrence was more supportive of the industry. However, the same judge also said “Some crypto assets are likewise nothing but creative schemes to evade securities regulations.”

Thus, the court hasn’t provided any clarity, which may depend on the SEC’s methodology used to classify some digital assets are securities.

Notably, lawyers agree that the ruling may apply in other courts if the majority panel of judges likes the reasoning in a sister court’s concurrence opinion.

Opening Brief in Ripple Vs SEC Lawsuit

The crypto industry and lawyers now await the U.S. SEC’s principal brief related to its appeals in SEC v Ripple lawsuit. It is scheduled to be filed by January 15. However, lawyers such as Jeremy Hogan and ex-SEC Marc Fagel believe pro-crypto Paul Atkins under the Trump administration may decide not to pursue the appeal further.

CoinGape has glanced at what could be expected from the opening brief by the U.S. SEC, as per Form C and outgoing SEC Chair Gary Gensler’s stance on crypto.

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space.

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Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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