TUSD went as low as 96 cents as Binance data shows traders apparently sold over $300 million worth in the past 24 hours.
TUSD Loses $1 Peg Amid Binance’s FDUSD Focus: Analyst
Binance introduced zero-fee FDUSD trading in December, giving users an incentive to sell.
$3.1 Billion TUSD Stablecoin Shaky, Briefly Depegs—What’s Happening?
TrueUSD (TUSD), a stablecoin with a market cap exceeding $3.1 billion, appears “shaky” and briefly depegged on November 22, dropping to as low as $0.9976 before restoring its peg. The temporary depeg was attributed to a deluge of selling orders, according to Kaiko, a blockchain analytics firm.
TUSD Briefly Depegs, Large Selling Orders Rolling Through
Riyad Carey, a researcher at Kaiko, noted that large sell orders, including one for $3 million, triggered the turbulence that caused the stablecoin’s price to dip below the dollar peg. This brief deviation resulted in users who redeemed TUSD receiving less USD. Ideally, any redemption of a fiat-backed stablecoin should result in a 1:1 reception of the collateral.
The incident highlights the potential impact of large order blocks on liquidity and the potential for slippage. TUSD, theoretically backed by USD and issued by TrustToken, is popular in Binance, an exchange that delisted USDC and 2023.
Because of this limitation, TUSD is one of the most liquid stablecoins paired with leading coins like Bitcoin (BTC). However, despite its popularity, it trails Tether (USDT), the world’s largest stablecoin by market cap.
The TEURO Mystery
This depegging occurred a few weeks after tough security questions were raised about TUSD. In mid-October, the minter was forced to disclaim TEURO, a token deployed from the same address, suggesting that private keys associated with TUSD may have been compromised.
Curiously, funds tied to TEURO, the fake token, were also linked to the deployment of TCNY, another fake token unaffiliated with TrueUSD. Following these incidents, the community began raising questions about the security of the stablecoin and, more importantly, its underlying infrastructure.
This was expected, considering that a centralized entity issues TUSD though all transactions are on-chain.
Despite these challenges, TrueUSD maintains that its smart contracts are secure. The company emphasizes that it has gained ownership of the TUSD minting contract since the end of 2020.
In early May 2023, TUSD depegged, rising to as high as $1.20 on multiple exchanges, particularly on Binance. This was attributed to an increase in activity on the SUI farming pool.
Still, this is not the first time popular stablecoins have depegged. In March 2023, USDC and DAI, two of the world’s largest stablecoins, depegged, leading to widespread fear in the market. However, the team restored parity. Moreover, to improve confidence, stablecoin issuers regularly publish attestation reports.
TrueUSD Depegs on Binance.US, Drops to 80 Cents Against Tether
TUSD trades at a discount versus Tether as former FTX provider Armanino’s rebranded outlet The Network Firm’s association with TrueUSD raises alarm bells on Crypto Twitter.
TrueUSD Stablecoin Has $26k of Funds at ‘U.S. Depository Halting Withdrawals,’ Reserve Report Says
The stablecoin issuer said last week that it had “no exposure” to the failed crypto custodian Prime Trust.
TrueUSD Says TUSD Stablecoin Has ‘No Exposure’ to Embattled Prime Trust
Stablecoin project TrueUSD said Thursday it had “no exposure” to embattled crypto services company Prime Trust as it raced to shore up confidence in its dollar-backed TUSD.
Stablecoin Market Shrinks for 14th Straight Month, Posing Potential Headwinds for Crypto Prices
The continued contraction of the stablecoin market capitalization suggests that the crypto markets are still in their bear phase, macro analyst Tom Dunleavy said.
TrueUSD’s Borrowing Rates Jumped to 100% as TUSD Soared to $1.20: Kaiko
Traders shorted TUSD to capture a 20% upside for the token’s intended $1 peg.
Bitcoin-Tether Pair Is Most Liquid on Binance Even as TUSD Pair Sees Higher Volumes
Trading volumes in the BTC/TUSD pair have surged over the past four weeks after the crypto exchange introduced zero trading fees for it.
TUSD Stablecoin Daily Trading Volume Surpasses $1B After Binance Boost
The surge follows Binance’s decision a week ago to eliminate the zero-fee trading discount on the platform except for the BTC-TUSD pair.
USDC Outflows Surpass $10B as Tether’s Stablecoin Dominance Reaches 22-Month High
Rival stablecoin tether (USDT) has grown to its most dominant since May 2021, now representing 60% of all stablecoins in circulation.
Binance Curb on Zero-Fee Trading May Cost Market Share, Boost TrueUSD Stablecoin
Binance abolished almost all zero fee trading pairs from its platform after nine months, only keeping the promotion for the TUSD-bitcoin pair.
TrueUSD Becomes 5th-Largest Stablecoin as Binance Mints $130M TUSD in a Week
Blockchain data shows exchange giant Binance has been relying increasingly on TUSD after regulators clamped down on its Binance USD stablecoin.
Binance mints 50M TrueUSD days after Paxos ordered stop issuing BUSD
Despite the minting of $50 million in TUSD, Zhao previously said the regulatory crackdown on stablecoins in the U.S. will cause the USD-back stablecoin market to “shrink.”
A stablecoin’s rise in market share has ignited the ‘Second Great Stablecoin War’
Since Binance announced it would auto-convert USDC, USDP and TUSD into BUSD on Sept. 6, BUSD’s share of the total stablecoin market has risen from 10.01% to 15.48%.
TrustToken Taps Chainlink for On-Chain Proof of Reserves for TrueUSD Stablecoin
The transparency measure is meant to provide additional certainty for decentralized finance (DeFi) traders who often rely on asset-backed stablecoins.
Which Stablecoin Is the Riskiest? The Crypto Market Is Pricing That In
Buying bitcoin may be cheaper using a stablecoin the market has greater confidence in, like the Gemini dollar, than with an alternative like USDT.