TrueUSD Depegs To $0.9712: The Cause
The recent depegging of TrueUSD (TUSD) to $0.9712 can be attributed to Binance’s announcement regarding its latest Launchpool. The announcement stated that farming Manta (MANTA) tokens would be possible by staking BNB and FDUSD, excluding TUSD as a staking option. This led to holders quickly selling off their TUSD holdings.
In addition, the depegging was influenced by large TUSD orders executed by whales on Binance. These influential players sold off a staggering $337 million worth of TUSD over the past three days.
Furthermore, on-chain data revealed a drastic reduction in the circulating supply of TrueUSD, with Binance wallets holding a significant majority of TUSD. This tumultuous journey prompted efforts from whales, including Justin Sun, to stabilize TrueUSD.
TUSD Reserves & Recovery After Depeg
An analysis of the reserves showed that the collateral ratio for TUSD stands at 101.16%, with a supply amounting to $1.9 billion. The escrowed collateral includes holdings in US Treasury Bills, First Digital Trust Limited, and USD Cash.
Currently, TrueUSD is trading near its stable value of $1, with a price of $0.9905 and a market cap of $1.89 billion. Its 24-hour trade volume has also seen a significant increase.
On the other hand, First Digital USD (FDUSD), a rival to TrueUSD, experienced a premium in its price following the Manta Launchpool announcement but has since stabilized.
Hot Take: Efforts to Stabilize TrueUSD
The recent depegging of TrueUSD to $0.9712 has caused concern among holders and market participants. However, efforts from whales, including Justin Sun, have been made to stabilize the stablecoin. The analysis of reserves and the gradual recovery of the price indicate a potential return to stability for TrueUSD in the near future.
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