Tron founder Justin Sun announced today that $100 million USDT has been transferred to Binance to buy BTC and TRX to increase the Tron DAO reserve.

Although there is no clear explanation about Tron DAO's decision to increase its reserves, it is estimated that this action was taken as a precaution against market volatility. Tron DAO continues its efforts to take strict measures for the stable crypto asset of the ecosystem in order not to suffer the same fate as TerraUSD, which has a similar form in May.

Prior to this move, Tron DAO purchased 500 BTC and 600 million TRX worth $60 million on May 10 to keep USDD stable. The Tron DAO Reserve is currently known to consist of 14,040 BTC, 140 million USDT and 1.9 billion TRX tokens. In addition, 8.71 billion TRX has already been burned for the USDD algorithmic stable crypto asset issuance.

Continuing to maintain its stability of 1 dollar, USDD is in 67th place with a market value of 703 million dollars today. On the other hand, USDD's collateral structure is shown as 200 percent over-collateralized according to the Tron DAO reserve site.

Tron Trx

Tron DAO's decision to buy BTC and TRX for an additional $100 million had no impact on the price of either cryptocurrency. TRX is changing hands at $0.08, down 4% in the last 24 hours. However, it can be said that TRX acts more resistant than the rest of the market.

Bitcoin, on the other hand, declined by 6 percent in the last 24 hours to $ 29,500, depending on the latest negative and disturbing developments in the market.

In this period when cryptocurrencies, especially Bitcoin and Ethereum, are under selling pressure, Tron DAO continues to take measures for possible sudden volatility increase. Because, the leaking of the draft law, which is claimed to be for crypto money regulations in the USA, to social media and the SEC's scrutiny of Binance on the issuance of BNB, there were developments that increased the anxiety of crypto investors.

On the other hand, US inflation data, which will be released this week, is also seen as an external factor that can increase volatility in crypto markets.