Stablecoin TrueUSD (TUSD) Loses Peg to USD
The stablecoin TrueUSD (TUSD) has deviated from its peg to the U.S. dollar, according to Chainlink. On January 16, TUSD was trading at $0.985, falling significantly below its peg the day before. This drop occurred amid rumors of TrueUSD holders exchanging their tokens for Tether (USDT), a rival stablecoin. In the past 24 hours, traders have sold over $340 million worth of TUSD, resulting in a net outflow of more than $43 million compared to buy orders.
Rumors Surrounding TrueUSD Issuer
Rumors have circulated within the cryptocurrency community that the issuer of TrueUSD failed to promptly publish a report on the coin’s collateral. Protos reported API errors on January 10 that prevented the system from reporting the dollar value of its collateral assets.
Binance’s Involvement with TrueUSD
Last February, Binance launched TrueUSD shortly after reports surfaced about American regulators investigating Paxos, the issuer of Binance USD (BUSD). The token issuance for TrueUSD occurred on February 16, aligning with Binance’s plan to diversify investment assets in stablecoins and move away from BUSD.
Hot Take: Uncertainty Surrounds TrueUSD Stability
The recent deviation of TrueUSD from its peg raises concerns about its stability and trustworthiness as a stablecoin. The significant outflow of TUSD suggests a lack of confidence among traders and the potential preference for other stablecoins like Tether. Moreover, rumors regarding delays in publishing collateral reports only exacerbate doubts surrounding TrueUSD. As the market for stablecoins continues to evolve and competition intensifies, it remains to be seen whether TrueUSD can regain its peg and restore faith among cryptocurrency investors.
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