TRON DAO has purchased $1 billion worth of Tether (USDT) tokens. This comes as the largest stablecoin loses its 1:1 peg to the U.S. dollar and briefly fell to around $0.97.
USDT is now trading at around $0.99 at the time of writing, according to data from TradingView.
TRON DAO said in a tweet they decided to purchase USDT to “safeguard the overall blockchain industry and crypto market.” The DAO first tweeted that it was going to purchase $300 million worth of USDT, but minutes later sent another tweet with the updated figure of $1 billion.
USDT, which has a market capitalization of $69 billion, started depegging in the early morning of Thursday. Data from Etherscan shows that Alameda Research, Sam Bankman-Fried’s crypto trading firm that’s rumored to be insolvent, has opened a few small short positions ranging from $250,000 to $500,000 on USDT.
Paolo Ardoino, chief technology officer at Tether, said on Twitter that the company has processed about $700 million worth of redemptions in the last 24 hours. Additionally, he insisted that the firm is facing “no issues.”
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