Justin Sun announced today that Tron will soon launch USDD 2.0, attempting to create a refreshed version of a former stablecoin.

Sun pledged that this asset will offer users 20% APY, entirely subsidized by Tron, which has “plenty of money.” A suspicious community remains wary of the firm’s previous failures, like USDD 1.0.

Tron Launches USDD 2.0 With Lofty Promises

Justin Sun, founder and former CEO of Tron, announced USDD 2.0 via social media. Although the firm tried to take precautions with the first incarnation of this stablecoin, it subsequently flopped and was removed from major exchanges.

Back in 2022, USDD offered 30% APY, which was later lowered due to market challenges. Most recently, in August last year, Tron DAO Reserve withdrew approximately 12,000 Bitcoin from USDD’s collateral without prior approval from its DAO.

This move shifted the stablecoin’s backing primarily to Tron’s native token, TRX, raising concerns about the asset’s stability and transparency.

Most importantly, the stablecoin lost its dollar peg several times in the past two years. USDD still serves as a cautionary tale of Sun’s failures in the community. So, the community isn’t wrong to question the new project. Nonetheless, the company is trying again.

“USDD 2.0 is about to launch with a 20% APY, fully subsidized by Tron. All interest will be sent in advance to a transparent address. There’s no other reason—it’s simply because we have plenty of money. So, stop asking me questions like ‘where does the yield come from,’” Sun stated.

To be fair,

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Author: Landon Manning