TrueUSD has depegged from the U.S. dollar, reaching a low of $0.9708, with Binance experiencing a net outflow of approximately $154.5 million in TUSD trades.The stablecoin issuer, suspected to be associated with TRON’s Justin Sun, cites “normal market dynamics” amidst concerns following a $100 million security breach on the Poloniex exchange.
Depegging Drama for TrueUSD
In the digital asset markets where stability is often taken for granted, TrueUSD (TUSD) has experienced a notable deviation from its intended 1:1 parity with the U.S. dollar. The stablecoin witnessed a troubling dip to $0.9708 in Asia, before making a modest recovery. Traders on Binance have reacted to this instability by selling off substantial amounts of TUSD.
A Sudden Sell-off Surge
The past 24 hours have seen a dramatic shift in TrueUSD‘s position on Binance. The platform recorded heavy selling activity, with a stark disparity between sales and purchases of TUSD. This sell-off resulted in a net outflow that underscores the market’s nervousness surrounding the stablecoin’s ability to maintain its peg.
Suspension and Speculation
On January 10, TrueUSD’s suspension of real-time attestations for its reserves raised eyebrows across the crypto community, with speculation about the firm’s capacity to back its tokens. Though TrueUSD attributed the suspension to internal errors, the assurances did little to quell the disquiet.
Auditing Upgrades and Market Mechanics
In response to the concerns, TrueUSD has announced an overhaul of its fiat reserve audit system, with enhanced reporting in collaboration with MooreHK. The issuer has also commented on the market’s reaction to Binance’s launchpool program, which may have prompted a shift away from TUSD towards other staking options.
Repercussions of the Poloniex Breach
Further compounding the challenges for TrueUSD, there have been whispers of a connection between the stablecoin and Justin Sun, the TRON founder who recently faced a $100 million security breach on his exchange, Poloniex. This association, whether perceived or real, could have contributed to the recent unease surrounding TrueUSD.
As the crypto market digests these developments, TrueUSD‘s response to the current situation remains a point of significant interest, with the community awaiting further clarification from the stablecoin issuer.
Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#TrueUSD #Bitcoin

The $2 billion in reserves that support Archblock's stablecoin TrueUSD are under its management (TUSD). Following the reserve transfer, Capital Union Bank now has more than $1.4 billion, according to a real-time attestation released on Wednesday by a reputable accounting company. From $438 million on March 10, this is an increase.

As New York-based Signature Bank, formerly Archblock's biggest banking partner, was unceremoniously shut down by US regulators two days later, Archblock started transferring money. It has no funds with Signature Bank at the moment.

After it was successful in establishing a name for TrueCurrencies, Archblock was established in 2017 under the name "TrustToken" (TUSD). TrustToken decided in September 2022 to concentrate on the development of #DeFi products for companies and financial institutions under the new brand name of Archblock.

According to Alex de Lorraine, chief operating and finance officer of Archblock, the decision to transfer money to Capital Union in recent days was brought on by deteriorating banking conditions for money businesses dealing in electronics in the US.

As previously noted, US regulators forced the closure or voluntary dissolution of Silvergate Bank, Silicon Valley Bank, and Signature Bank this month. In an effort to safeguard their assets and enable consumer money transfers, many digital asset companies are now in a precarious position.

Following the disclosure that it had deposited $3.3 billion in Silicon Valley Bank, Circle Internet Finance Ltd. witnessed the greatest dollar value loss in the history of its USDC token.

Prior to that, Capital Union also collaborated with Tether, a cryptocurrency whose primary cash reserves are kept in Bahamas-based banks. Customers can deposit and trade digital assets in the same account as fiat money or other assets at the well-known crypto business partner, Capital Union Bank.

The decentralized lending technology TrueFi's governance token, TRU, has increased by more than 200% recently. This was spurred by a flood of rumors regarding Binance stablecoins.

The largest #cryptocurrency exchange in the world, Binance, created $50 million worth of the stablecoin TrueUSD (TUSD). After the regulatory crackdown on Binance USD (BUSD) issued by Paxos, the event has led to discussion among cryptocurrency investors about TUSD possibly playing a larger role in trading on the Binance exchange.

For many investors, it is necessary to clarify that this FOMO token TRU. #TRU and #TUSD are distinct. In particular, TrustToken, the company that created #TrueUSD and TRU, split them off in the past.

As a result, TRU's price immediately reached its previous level. The token is currently being traded for $0.97.

What Is TrueUSD (TUSD)?

TrueUSD (TUSD) operates as a stablecoin that maintains a fixed 1:1 value ratio with the U.S. dollar. This stability is achieved by maintaining a corresponding reserve of USD for each TUSD token in circulation.

Built on the ERC-20 token standard, TUSD boasts compatibility with multiple blockchain networks and decentralized applications (DApps). Similar to its stablecoin counterparts, TUSD’s primary objective is to enable swift market entry and exit in the realm of cryptocurrencies, bypassing the prolonged settlement times typical of conventional banking systems. TUSD facilitates seamless trading for users seeking to transition between cryptocurrencies, and it acts as a vital link between the world of digital assets and fiat currencies, devoid of the inherent volatility associated with traditional cryptocurrencies.

How TrueUSD (TUSD) Works?

Operating on the Ethereum blockchain, TrueUSD leverages smart contracts to facilitate the issuance and redemption of a tokenized manifestation of the U.S. dollar, offering enhanced efficiency and accessibility to users.

Upon acquiring TrueUSD (TUSD), the underlying smart contract is triggered, automatically generating an equivalent TUSD amount, subsequently augmenting the circulating token supply. Conversely, when users opt to convert their TUSD into traditional USD, a smart contract promptly initiates the removal of these tokens through burning, effectively and irrevocably reducing the TUSD circulating supply. Simultaneously, an equivalent value of U.S. dollars is credited to the user.

An intrinsic benefit of TrueUSD lies in its fee-free nature for both purchasing and redeeming transactions, enhancing its appeal and usability. Notably, TrueUSD’s revenue model hinges on interest accrued from the U.S. dollar holdings in its accounts, presenting a sustainable approach to maintaining operations.

In essence, TrueUSD merges the convenience of blockchain-based transactions with the stability of the U.S. dollar, fostering a seamless and reliable bridge between the digital and fiat realms while prioritizing cost-effective and transparent processes.

$ETH

#WebGTR #TrueUSD #TUSD #Blockchain #Ethereum