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Top trader says an under-the-radar altcoin set will emerge as the winner of Terra (LUNA) collapse

A closely-followed trader names an altcoin he says was destroyed following the collapse of Terra (LUNA) and its algorithmic stablecoin TerraUSD (UST) could emerge as a big winner.
Pseudonymous Trader Light tells his 160,600 Twitter followers that Tron (TRX) and its algorithmic stablecoin, Decentralized USD (USDD), are poised to fill the vacuum left by Terra’s demise.

“TRX has shown tremendous relative strength, again off its March highs in an environment where 99% of alts are down 50% or more, driven by Tron’s recent foray into the algorithmic stable zone and a 30% return on USDD . In bear markets, winners win.”

Tron, one cryptocurrencyoriginally intended to serve as a decentralized storage and distribution platform for social media and digital entertainment content, recently pivoted to reflect the affiliation between LUNA and UST prior to its collapse.

Says Tron Founder Justin Sun,

Airdrop from VNSMART Top trader says an under-the-radar altcoin set will emerge as the winner of Terra (LUNA) collapse, Crypto Trading News

“USDD is linked to the underlying TRX and issued decentrally. If the price of USDD is below US$1, users and arbitrageurs can send USDD to the system and receive US$1 worth of TRX.

If the price of USDD is higher than $1, users and arbitrageurs can send $1 worth of TRX to the decentralized system and receive a USDD. Regardless of market volatility, the USDD protocol will decentrally keep the USDD stable at 1:1 against the US dollar via appropriate algorithms.”

According to Light, the current levels of TRX and USDD present opportunities for traders and investors considering that the algorithmic stablecoin is a market capitalization of just $534 million.

“[TRX plus USDD] is still in a relatively early stage and is only affected by insiders. There’s room for laggards and eventually even retail before it poses the same risks as LUNA. Timing is everything in music chairs. USDD market cap is only 2.5% of UST peak.”

The crypto trader also mentions a tweet from Justin Sun in which the Tron-Founder Says USDD Will Backstop $10 Billion in Tron-DAO– Reserve has.

According to Light, traders have now started sending their TRX to the system to mint USDD.

“Following the market-wide capitulation, USDD minting resumed this weekend, catalyzing a sharp decline in TRX’s centralized exchange balances as it was withdrawn to mint USDD.
Source: Light/Twitter
The popular trader concludes by saying that TRX has historically outperformed other crypto assets in bear markets.

“Tron has a history of pumping during periods of poor market conditions, with some names sucking up the lion’s share of speculative flows. The risk/reward tradeoff of betting on a resurgent Justin Sun, who has seen opportunity in the vacuum left by Do Kwon, is favourable.”

At the time of writing, Tron is trading at $0.08, up over 14% from its seven-day low of $0.07.
Check the price action

Source: Crypto News Deutsch

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