Tron Launches USDD 2.0 Offering 20% APY Despite Community Skepticism
Justin Sun announced the launch of USDD 2.0, a new version of Tron's stablecoin, offering a 20% APY fully subsidized by Tron. Despite assurances of sufficient funds, skepticism persists due to past issues with USDD 1.0.
- USDD 1.0 was launched in 2022 with a 30% APY but reduced it amid market instability.
- The stablecoin lost its dollar peg multiple times and faced transparency problems, leading to delisting from major exchanges.
- Tron shifted USDD’s backing primarily to its native token, TRX.
- Sun stated that interest payments for USDD 2.0 would be sent to a transparent address, claiming ample funds to support the initiative.
- Concerns remain about sustaining the 20% APY without impacting profitability.
- TRX's recent all-time high was followed by a decline in value, raising doubts about its viability as collateral for USDD 2.0.
- Community skepticism stems from previous failures and the reliance on cash reserves for long-term sustainability.