# USDD Review: Scam or Legit?

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#### Mrcoin

If you want to learn about whether the USDD stablecoin is scam or not, this detailed guide is a good place to start.

## Justin Sun doesn't have good reputation in the market​

The billionaire Justin Sun, who is not well-known for his reputation. Youtuber pointed out that Justin has fled many countries to avoid punishment, and there have also been reports of them engaging in insider trading. It isn’t easy to trust such a person as well as their project.

Furthermore, the video has pointed out some crucial things that we must note when evaluating USDD. First of all, USDD claims to be an algorithmic stablecoin, and even though the minting and burning of its tokens are paused, for now, the team will resume it sooner or later. It also can't be an algorithmic stablecoin because, in such a coin, the price is managed by burning and minting coins which are currently disabled in USDD. The decentralized part is also a lie, as only a few large organizations are currently allowed to mint USDD by burning TRX tokens.

In addition to that, youtuber found out that out of the $723 million USDD tokens,$683 million were minted by Justin Sun. Can we call a 94% concentration on one hand decentralized? We can’t! The YouTuber thinks Justin founded USDD, so he can offload TRX tokens without affecting the price of the token.

USDD doesn’t look safe when it just has a market cap of $700 million, while UST failed after crossing the$15 billion mark. Another thing common between UST and USDD is the high-interest rates that are unsustainable in the long run. The funny part is that even though Justin says they won’t make the same mistakes as UST, they offer almost double the interest rate at 39.6%. Anyone with the slightest idea about investing would know a 40% risk-free fixed return is too good to be true.

Do you think Tron’s USDD is a scam as Youtuber claims it to be? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.

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