Justin Sun’s USDD Stablecoin Could Collapse, Says Mike Alfred

Mike Alfred, an investor who serves as a board member of BTC miner Iris Energy and digital asset investment platform Eaglebrook Advisors, recently took to Twitter to address the ongoing issues with Huobi and Justin Sun. He addressed the fact that Justin Sun is the shadow owner of Huobi. Additionally, he mentioned that Justin Sun is the most erratic billionaire in crypto.

Alfred also mentioned that he has been sending billions of dollars’ worth of stablecoins in and out of Binance. He warned the community that something huge is afoot and urged all users to withdraw their coins from unregulated exchanges.

In addition, he also spoke about Justin Sun’s USDD stablecoin. Fred mentioned that Justin Sun’s USDD stablecoin has depegged and could be in the process of collapsing. He also stressed that it’s code red time in crypto again.

USDD is trading at $0.9778 at press time, according to CoinMarketCap data, with a 0.2% drop in value over the last 24 hours. The Huobi token has also plummeted by 7.4% over the last 24 hours, ever since the rumors of the layoff surfaced.

The rumors about Huobi, including the layoffs, asking employees to stake their salaries in stablecoins, and the closure of internal staff communication channels, have created a rebellion. Additionally, during the last 24 hours, the normalized trading volume of the exchange was down.

Ever since the fall of the FTX exchange, the robustness of the resources of Huobi has also been a question. Justin Sun hasn’t commented on the recent chaos that has been happening with the exchange.