The TUSD Takeoff: Binance’s Stablecoin Loses Almost 1%
The stablecoin TrueUSD (TUSD), issued by the Chinese company Techteryx and supported by Binance, has experienced a heavy drop, losing about 1% of its value. Currently trading at $0.985, it has temporarily lost its anchor with the US dollar. This drop began on January 15th, with TUSD printing increasingly violent red candles on the chart. In the last 24 hours, there have been over $444 million in TUSD sell orders compared to $301 million in buy orders on Binance, resulting in a flow deficit of $142 million.
Causes of the Depeg
There are two main reasons that may have triggered this situation. Firstly, rumors suggest a possible connection between TUSD and billionaire Tron patron Justin Sun, who has recently suffered hacks of his companies. Secondly, TUSD was not included in the latest Manta launchpool on Binance, raising concerns among investors. Additionally, there are rumors surrounding TUSD’s certifications, although there is no confirmation of these rumors.
The Fate of TUSD
TUSD has a history of depegging and experiencing anomalies. However, it is important to note that the recent depegging was not as severe as it could have been. While there are positive factors that could lead to a recovery of the peg, such as the stability of its market cap loss and lack of specific news indicating an end for TUSD, negative factors include the unknown issuing company Techteryx and recurring anomalous behaviors.
Conclusion
The situation with TUSD is not yet critical, but it is advisable for holders to monitor the situation closely. It is important to be prepared to cut losses if necessary and pay attention to the support level at $0.984. Investing fully in stablecoins can be risky, as they can detach from their anchor. Stablecoins offer opportunities for returns but also come with higher risks compared to traditional fiat currencies. Always conduct thorough research before investing.
Hot Take: Is TUSD’s Future in Jeopardy?
While TUSD has experienced a depeg and a loss in value, its future is uncertain. The recent drop is not as severe as previous instances, and there are both positive and negative factors to consider. The unknown issuing company Techteryx raises concerns about transparency, but the stability of TUSD’s market cap loss suggests a potential recovery. It remains to be seen whether TUSD will meet the same fate as UST on Terra/Luna. In the meantime, it is important for holders to monitor the situation closely and make informed decisions based on their own risk management strategies.
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