In the latest episode of market turbulence, the decentralized stablecoin USDD, spearheaded by Justin Sun, finds itself in a familiar predicament: depegged for the fifth time since its inception. Designed to maintain a steady value of one dollar through algorithmic mechanisms, USDD is currently trading at $0.97, marking a 3% deviation from its intended peg.
This depegging incident coincides with reports of Poloniex, another venture associated with Justin Sun, grappling with the challenge of upholding the peg for its wrapped bitcoin (WBTC) offering. Similarly, Sun’s other stablecoin, TUSD, has experienced a minor deviation from its peg, albeit less severe compared to the struggles encountered by WBTC on Poloniex and USDD.
The setbacks extend beyond stablecoins, as Justin Sun’s broader portfolio of projects faces mounting difficulties. HTX, the cryptocurrency exchange advised by Sun, has been plagued by customer complaints of malpractice and controversy surrounding Sun’s personal bitcoin holdings. Moreover, the value of the HTX token has plummeted by nearly 25% in recent months following unauthorized rebalancing and modifications.
This string of challenges adds to the colorful tapestry of controversies that have followed Justin Sun throughout his career. Accusations ranging from market manipulation to his abortive $28 million space voyage have shadowed Sun’s reputation.
Despite once serving as Grenada’s ambassador to the WTO and holding citizenship in multiple countries, including St. Kitts and Nevis, Malta, and China, Sun’s fortunes have faced a downturn since his entanglement with Huobi (now HTX) began last year.