TrueUSD Stablecoin Faces Challenges with Attestations
Justin Sun-backed stablecoin TrueUSD is currently experiencing difficulties with the attestations for its underlying reserves. According to data from LedgerLens, the real-time reserve balance dashboard on the TrueUSD official website, there were API errors or non-responses from the pricing source during the last reporting interval. As a result, the system was unable to assign a U.S. dollar value to the collateral assets at that point in time.
Concerns Surrounding Collateral
This lack of response from third-party systems led to errors, causing the total liabilities to exceed the total assets. The system’s automated attestations, which are designed to address temporary imbalances, were paused due to this actual imbalance between liabilities and assets.
TrueUSD has not yet made any public statements regarding this issue.
Past Challenges and Support
This is not the first time TrueUSD has faced difficulties with attestations. In June 2023, the stablecoin temporarily halted automated attestations due to balance discrepancies. TrueUSD has funds supporting its TUSD tokens spread across various locations, including insured U.S. depository institutions, an undisclosed Hong Kong depository institution, an undisclosed Bahamian depository institution, and a Swiss depository institution.
In October 2023, TrueUSD encountered a security breach involving a third-party vendor that exposed sensitive client data. This incident affected clients who joined the platform between 2018 and 2019 and included information such as names, email addresses, and phone numbers.
Hot Take: Challenges Continue for TrueUSD Stablecoin
TrueUSD’s ongoing difficulties with attestations raise concerns about the stability and transparency of the stablecoin. With previous instances of balance discrepancies and a security breach, investors and users may question the reliability of TrueUSD’s underlying reserves. As the crypto industry evolves, stablecoins must provide robust attestations and maintain a high level of trust to ensure their credibility in the market. TrueUSD will need to address these challenges promptly and effectively to restore confidence among its stakeholders.
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