Justin Sun-linked stablecoin TrueUSD (TUSD) has continued to depeg, hitting a low of $0.97 as traders continue to dump the stablecoin in favor of USDT.
TUSD’s depeg sparked a considerable backlash from users across exchanges and social media.
TUSD Continues Drop
The TUSD stablecoin first lost its peg to $1 on the 15th of January at 11 AM UTC, dropping as low as $0.984 by 11:15 PM. On Thursday morning, it slid further, reaching $0.9708 before recovering slightly and rising to $0.9897.
The depeg occurred amidst reports that holders are selling hundreds of millions of dollars’ worth of TUSD via the TUSD-USDT trading pair. So far, traders have dumped $330 million worth of TUSD, with $238 million being sold in the past 24 hours alone. Data also shows that there have been only $296 million worth of buy orders, marking a net outflow of around $42 million for the stablecoin.
The TUSD stablecoin had been trading nearly 8% below its peg on the Poloniex exchange for weeks. However, the stablecoin’s price remained fairly steady on Binance. This issue was brought to light by pseudo-anonymous X user Rho Rider when they pointed out the opportunity for arbitrage trading. Others have speculated that the sell-off could be attributed to TUSD not being listed as one of the assets on Binance’s MANTA launch pool initiative.
“With the recent announcement of MANTA in Binance’s launchpool program and the need to stake BNB or FDUSD — at the expense of other stablecoins like TUSD that might have been used in the past for launchpool staking — it seems that a horde of investors are selling the latter for the former.”
Real-Time Attestations Paused
On the 10th of January, several reports claimed that TUSD had paused real-time attestations of its reserves, with users suspecting the entity behind the stablecoin was unable to collateralize it.
“The real-time attests of TUSD stopped working since yesterday, which potentially means that it was reported as undercollateralized.”
However, the company attributed the development to internal errors.
“During the last reporting interval, the LedgerLens System received responses, errors, or non-responses from third-party systems or accounts, resulting in the sum total of liabilities being greater than the sum total of the relevant assets. Commonly, over the historical operation of the System, the Balances ripcord is triggered by temporary imbalances seen in normal operations (such as funds in transit or Management opening a new bank account not yet integrated into the System). TrueUSD responded to Protos to note that the ‘Balances’ ripcord “was accidentally triggered by reserve fund movements between banks, and it has been fixed.”
Partnership With MooreHK
TrueUSD also announced it had partnered with Hong Kong-based accounting firm MooreHK. According to the announcement, the partnership with MooreHK would fully upgrade its fiat reserve audit system.
“We are excited to announce that TUSD has fully upgraded its fiat reserve audit system. Effective today, Moore Hong Kong (MooreHK), a leading accounting firm, officially commences offering daily attestation service to TUSD. The upgraded attestation report includes additional details about the reserve funds in the custody of its financial and fiduciary partners.”
MooreHK is a member of Moore Global, one of the world’s foremost accounting and consulting networks, with a rich history spanning over a century.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
