Tron’s USDD Goes Live, Community Shares Mixed Sentiments

Following the official launch of USDD, Tron Founder Justin Sun echoed the promise of the stablecoin that it will be the digital asset that will lead the “stablecoin 3.0” – a term he coined during the launch tease of the asset.

Launching as scheduled on May 5, decentralized USD (USDD) has made rounds on social media for a couple of weeks already. The algorithmic stablecoin is designed to reward investors who attempt to profit from market inefficiencies. This will keep the coin’s price closely pegged to that of the US dollar through trading between Tron (TRX) and USDD.

While this sounds like a good technology to some investors, some members of the crypto community quickly noticed the project’s similarity with Terra’s UST.

Dustin Teander, an analyst at crypto data platform Messari, pointed out that USDD is the same as Terra’s UST in two aspects:

It is mechanistically similar to Terra’s UST in terms of minting and price stability.

Meanwhile, Galois Capital Co-Founder Kevin Zhou called it a “LUNA clone.” Interestingly, Twitter crypto analyst Alex Krüger already foresaw this development. In a tweet he shared on April 21, he accused Tron of “copying Ethereum and plagiarizing the Ethereum whitepaper.”

While some users shared Krüger’s sentiments, the others showed support for Tron’s stablecoin. User bbryan927 likened the situation to Microsoft and Apple’s OS wars, saying that “[it] doesn’t matter.”

Tron has indicated its intent to establish a $10 billion Bitcoin (BTC) worth of reserves. Other cryptocurrencies will also be included in the reserve to support the new stablecoin. Aside from Tron, USDD will also be available on Ethereum and BNB Chain starting today.