TrueUSD Faces Depegging As Whale Dumps Millions In TUSD
TrueUSD (TUSD) has experienced a significant de-pegging, falling by 1.4%, due to substantial outflows orchestrated by whale addresses. According to a report from Binance, around $150 million worth of TUSD was withdrawn from the exchange. Within the past 24 hours, TUSD saw inflows of $301.54 million, with large orders accounting for $237.30 million, medium orders for $33.08 million, and small orders for $31.15 million. Outflows totaled $147.77 million, with large orders accounting for around $372.04 million, medium orders for $40.26 million, and small orders for $37 million.
This whale-induced sell-off and market dynamics caused TUSD’s value to drop from $1 to around $0.98, pushing it below First Digital USD (FDUSD) in the top stablecoins ranking.
Regulatory Winds Intensify As Stablecoins Face Scrutiny
TrueUSD’s de-pegging comes at a time when stablecoin regulations in the United States are being anticipated. Circle CEO Jeremy Allaire expects regulatory developments in 2024, following the approval of spot crypto exchange-traded funds. The Clarity for Payment Stablecoins Act is also pending approval in the House of Representatives, aiming to subject stablecoins to traditional financial regulations.
Despite TUSD’s de-pegging, industry insiders remain hopeful that regulatory frameworks will bring stability and consumer protections to the stablecoin ecosystem.
Tether Faces Accusations Amidst Global Investor Attention
In another development in the stablecoin segment, a recent UN report accuses Tether’s stablecoin USDT of contributing to illegal activities, particularly in Southeast Asia. The report cites instances of money laundering and the exploitation tactic called “pig butchering.” However, Tether refutes these claims and emphasizes its commitment to combatting criminal use of USDT.
Hot Take: Stablecoin Volatility and Regulatory Scrutiny
The recent de-pegging of TrueUSD highlights the vulnerability of stablecoins during periods of heightened volatility. With regulatory scrutiny on the horizon, there is a growing need for stability and consumer protection within the stablecoin landscape. As industry players closely watch developments in 2024, it remains to be seen how stablecoins will evolve in response to these challenges.
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