The TrueUSD (TUSD) stablecoin fell to $0.995 following the exit of former Binance CEO Changpeng Zhao and terrorism financing charges against Tron.
The TrueUSD (TUSD) stablecoin decoupled and fell to lows of $0.995 amid a flood of sell orders following Changpeng Zhao’s resignation as Binance CEO and a Reuters report that terrorists prefer Justin Sun’s Tron Instead of Bitcoin facilitating terrorist financing. Currently, TUSD price is trading at $0.996 after a re-peg attempt.
TUSD decoupled amid market concerns
The TrueUSD (TUSD) stablecoin began decoupling this week as traders liquidated their holdings amid heightened concerns following Changpeng "CZ" Zhao's resignation as CEO of the world's largest cryptocurrency exchange Binance. assets. On November 27th and 28th, the decoupling policy worsened and the TUSD price fell to $0.995.
Kaiko researcher Riyad Carey reports that the TUSD stablecoin peg is looking unstable due to some massive market order selling. The largest single sale of TUSD was $3 million.
In addition, Reuters reported that Justin Sun’s Tron was used by terrorists for terrorism financing more than Bitcoin, which also led to the decoupling of TUSD. The report pointed out that Israel’s National Anti-Terrorism Financing Bureau seized 143 Tron wallets between July 2021 and October 2023.
Justin Sun responded on X to clarify that Tron is decentralized like Bitcoin and Ethereum. He added that the Tron team is committed to combating terrorist financing.
“While we are committed to combating terrorist financing by integrating various analytical projects and partners, our top priority remains to maintain decentralization, ensure everyone’s assets are safe, and provide instant, affordable and reliable transactions, as always."
Tron (TRX) price fell over 8% to $0.100 and is currently trading at $0.101, down 1% in the past 24 hours.
Since TUSD is backed by former Binance CEO CZ and Tron founder Justin Sun, the news led to massive liquidations of TUSD. Despite multiple attempts, the stablecoin has failed to re-peg and is currently trading at $0.996.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
