Time for a New Algo Stable or Time for Stable Regs?

Before this weekend’s bank run that saw UST lose its peg, Justin Sun, creator of the TRON network, announced his own algorithmic stablecoin USDD.

• USDD will have an elastic relationship with TRX just as UST has with LUNA. TRON DAO’s rollout of USDD saw it launch on at least 7 dexes on May 5th but was quickly overshadowed by the tumultuous weekend the TERRA blockchain had.
• According to the Block, the initial circulating supply was $127 million on TRON, $18 million on Ethereum, and $20 million on BNB through the cross-chain protocol BitTorrent Chain (BTTC).
• Alameda Research was the first member & whitelisted institution of the TRON DAO. As an approved collaborator to the reserve, they will have access to mint or burn USDD as well as attend meetings, support the community and raise awareness of USDD.

Can algorithmic stablecoins survive in the market after the recent bank run on UST?

Among other things, the TRON DAO Reserve has a mission to prevent panic trading caused by extreme market volatility, which would have been useful during this volatile weekend but what will TRON do differently than TERRA and will it be effective? Time will tell but there is a theory floating around that this weekend was a coordinated attack to bring about regulation in the stablecoin space.