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
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