Tron's DAO to Purchase $1B USDT to 'Safeguard' Against Market Slump

USDT slipped to as low as 93 cents in the European afternoon hours.

By Shaurya Malwa

Nov 10, 2022 at 1:02 p.m. UTC

Updated Nov 10, 2022 at 4:56 p.m. UTC

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Shaurya Malwa

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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Tron's decentralized autonomous organization (DAO), a community-focused body that supports development on the Tron network, said that it would purchase over $1 billion worth of tether (USDT) stablecoins to cushion against a market decline.

"To safeguard the overall blockchain industry and crypto market, TRON DAO Reserve will purchase $300,000,000 #USDT in the market," Tron DAO said in a tweet.
In a follow-up tweet, Tron DAO said it would increase the purchase amount to over $1 billion. "You may see the change of balance on Usdd.io and all the reserve will be in CEXs," Tron DAO said.

USDT slipped 3% on Thursday amid contagion risks stemming from liquidity issues at crypto exchange FTX and its related trading arm Alameda Research, as CoinDesk reported.

UPDATE (Nov. 11, 13:23 UTC): Updates purchase figures committed by Tron DAO.

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