A popular Youtube analyst who foretold the FTX collapse says that the new danger will come from the Tron ecosystem.
Bitboy warns about USDD after FTX crash
Yotutuber, with 1.44 million subscribers, said in his most recent tweets, “EXIT USDD NOW.” The crypto analyst says that USDD, the stablecoin of the Tron network, is not secure. In his post, he outlined the moves between FTX CEO SBF and Tron founder Justin Sun. He also said that no stablecoin on the market is safe.
Ben “Bitboy” Armstrong advises staying out of the market until the dust of the FTX crash is gone. He had spoken negatively about CEO Sam Bankman-Fried many times before. The crypto phenomenon specifically claims that the SBF is lobbying the authorities for the law. He also promised to reveal many of his other bad deeds in his previous tweets. In late October, he claimed that FTX would victimize its users after exploiting the exchange API.
Bitboy’s warnings follow allegations that SBF-founded Alameda is selling USDD to provide liquidity. Faced with massive withdrawals after rumors about it, FTX tried every method to gather liquidity. Rumor has it that this includes selling a large amount of USDD stablecoins.
USDD, the stablecoin of the Tron network, is currently unstable in the dollar. It fell by around 1.6% on the day to as low as $0.96.
Meanwhile, it’s worth mentioning that the Tron DAO Reserve has not been honest about how USDD is backed. Data from JustLend, which provides data on the network’s TVL volume, shows that USDD could fluctuate further as the prices of BTC and TRX fall. In summary, there is almost currently only 113% coverage ratio against the 283% claimed by the Tron DAO Reserve.
In another tweet, Bitboy claims that SBF will threaten to sell and destabilize USDD unless it gets support from Justin Sun. Specifically, Ripple Chief Technology Officer David Schwartz tweeted that Bitboy had already warned about the FTX collapse.
Summary of the crisis
cryptocoin.comAs you follow, Binance has announced that it will sell its FTT tokens due to ‘recent disclosures’. On top of that, the CEO of Alameda offered to buy what Binance had. After CZ refused, saying they wanted to remain free market, FTX faced a liquidity crisis over requests for massive withdrawals from investors. SBF made statements saying that everything is fine these days. Then the funds sold to meet the demand were insufficient. After the crisis, the FTT price and the crypto market fell hard. He took action to buy the rival exchange on Binance. He later reversed this decision due to regulatory concerns. SBF tweeted recently that it regrets its mistakes.
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