TrueUSD Stablecoin Continues to Lose Value
The stablecoin TrueUSD (TUSD), which is associated with Justin Sun, has experienced a drop in value, reaching a low of $0.97. Traders are choosing to sell off TUSD in favor of USDT, causing the depeg. This has led to significant backlash from users on exchanges and social media.
TUSD’s Decrease in Value
TUSD initially lost its peg to $1 on January 15th, dropping to $0.984 by 11:15 PM UTC. The depegging continued, and the value of TUSD fell to $0.9708 before slightly recovering to $0.9897. This drop coincided with reports of users selling hundreds of millions of dollars’ worth of TUSD through the TUSD-USDT trading pair. Traders have sold $330 million worth of TUSD, with $238 million sold in the past 24 hours alone. The stablecoin has only seen $296 million worth of buy orders, resulting in a net outflow of around $42 million.
On Poloniex, TUSD had been trading nearly 8% below its peg for weeks, while its price on Binance remained fairly steady. Some attribute the sell-off to TUSD not being included in Binance’s MANTA launch pool initiative.
Temporary Pause on Real-Time Attestations
On January 10th, it was reported that TUSD had paused real-time attestations of its reserves, leading some to suspect that the stablecoin was undercollateralized. However, the company stated that this was due to internal errors, as third-party systems or accounts had not responded correctly.
Partnership with MooreHK
TrueUSD has also announced a partnership with MooreHK, an accounting firm based in Hong Kong. This partnership will upgrade the fiat reserve audit system and provide additional details about the reserve funds held by financial and fiduciary partners.
Hot Take: TUSD Struggles as Users Dump Stablecoin
TrueUSD’s recent depegging and decline in value has caused traders to abandon the stablecoin in favor of USDT. This trend has led to backlash and speculation about the stability and collateralization of TUSD. Despite the partnership with MooreHK to upgrade its audit system, TrueUSD will need to address these concerns to regain confidence from users and maintain its position in the stablecoin market.
By
By
By
By
