HTX to remove multiple trading pairs with Justin Sun’s USDD stablecoin

Cryptocurrency exchange HTX is preparing to remove many trading pairs with USDD, advising its users to cancel pending orders and choose alternative pairs.

Cryptocurrency exchange HTX (formerly Huobi) is set to remove several (USDD) trading pairs from its exchange just weeks after concerns arose over the stablecoin’s backing and recent significant collateral withdrawals by the TRON DAO Reserve.

In a press release dated September 9, the trading platform said it will remove 14 trading pairs, including DOGE/USDD, NEAR/USDD, USDD/USDC, and EOS/USDD, on September 12. The exchange recommended that users cancel pending orders and switch to alternative trading pairs. While the specific reasons for suspending the trading pairs were not disclosed, the exchange stated that the action was aimed at providing a “better trading experience.”

Lmao @justinsuntron It recently quietly removed 12,000 BTC as USDD collateral and is now 100% backed by TRON (excluding 20 million USDT).

The address was: 1KVpuCfhftkzJ67ZUegaMuaYey7qni7pPj

— Symbio (@NoCryptFish) August 21, 2024

The move comes amid ongoing concerns about USDD, particularly following major changes made by the TRON DAO Reserve. The Reserve withdrew approximately $750 million worth of Bitcoin (BTC) backing USDD in late August, leading to more intense scrutiny. Following the withdrawal, the stablecoin is now largely backed by TRON’s native token, TRX.

Regarding the decentralized stablecoin USDD, its mechanism is similar to MakerDAO’s DAI and is not mysterious. When your collateral exceeds the amount specified by the system (usually between 120%-150% depending on the vault), any collateral holder can freely withdraw any amount…

— HE Justin Sun🌞(recruiting) (@justinsuntron) August 22, 2024

TRON founder Justin Sun defended the move, explaining that the previous collateralization ratio of over 300% was not “very efficient.” He also reassured users of USDD’s stability, emphasizing that the stablecoin’s mechanism allows for collateral withdrawals when exceeding system requirements, similar to MakerDAO’s (DAI) mechanism.