USDD cryptocurrency token suspected of using a fraudulent scheme

Scheduled dump and dump fraud and Ponzi schemes are becoming increasingly common as the cryptocurrency industry continues to expand and digital assets become more popular.

Yesterday, it was reported that a stablecoin called USDD (project manager — Justin Sun) was accused by Steven Findsayzen, also known as Coffeezilla, of using a Ponzi scheme.

USDD’s performance remains in isolation from the US dollar, and therefore there are discussions about the potential risk of investors in this stablecoin. After losing its peg to the dollar on June 13, stablecoin hit a low of $ 0.93 before recovering to its previous level of $ 0.98.

The founder of the new stablecoin is a billionaire named Justin Sun. He is quite a controversial figure in his own right, as he has previously fled several countries for fear of prosecution. One of his former employees claims that they were «always engaged in insider trading.»

As part of his investigation, the YouTuber found out that 94% of the stablecoin coins currently belong to San and his entourage, and that the project itself is a lure for retail traders that will end with the founder’s withdrawal from the project. Findseisen also believes that stablecoin reserves do not match the number of coins minted.

It seems that San, like the management of Tether, will have to conduct an open audit with the participation of external auditors to clear himself and the project of suspicion.