The UST depeg has turned the cryptosphere upside down and naturally continues to make news. Today, it’s Justin Sun‘s turn to speak out on the Terra blockchain case. Justin Sun has offered to set aside $10 million in USDD to help small investors affected by the UST stablecoin depeg. Justin Sun’s plan is to help the 236,000 UST holders most affected by the crisis. He also said that he would provide more details on this plan very soon.
Here is his full statement on Twitter: “I feel for everyone in this unforeseen crisis. I would like to commit $10 million USDD to the recovery of the lowest 236,000 UST holders. I believe this will benefit those most affected and show our unity! Details will be announced soon!”
Justin Sun with a new algorithmic stablecoin
The current framework around algorithmic stablecoins has not dampened Justin Sun’s ambitions. He is not afraid to do so, and intends to “pay back” the victims of the UST by offering them USDD. USDD is the stablecoin of the TRON blockchain, which Justin Sun founded. The operation of the latter is extremely similar to that of the defunct UST. A rather daring decision on the part of the Chinese entrepreneur, given what algorithmic stablecoins such as UST and DEI have undergone in recent weeks. By the way, a platform quite similar to what Anchor was proposing was released on the TRON blockchain: JustLend.
So, is this a publicity stunt on the part of Justin Sun or a real act of kindness? The latter is a rather controversial figure in the crypto world. Some consider him a fraud, as in 2018, when he was accused of having deliberately sold 6 billion TRX causing a price drop. Recently, he also announced that he would no longer participate in the daily operations of the Tron Foundation, causing the price of the TRX token to fall once again. It is clear that this decision would provide significant support to the victims. Only time will tell if this announcement will indeed allow the reimbursement of those affected.