Is TrueUSD the Next USTC? Stablecoin Depeg Events Investigated
TrueUSD (TUSD) depegged from the US dollar this week, marking its second depeg from $1 in the last two months. Losing parity with the US dollar and falling to $0.9685 reflected a familiar situation for many crypto users. It reminded them of the USTC depeg in 2022 ahead of the infamous TerraLUNA crash.
According to reports, a mass selling by whale addresses caused an unnatural movement in TUSD price last Monday. Data from the Binance exchange showed that a lack of TUSD mining on one of its latest Launchpools resulted in the stablecoin’s dump. The crypto exchange recorded TUSD outflows of $377.2 million within 24 hours.
That is the second noticeable TUSD depeg in the last two months. The earlier event happened in November 2023, with the stablecoin losing parity with the US dollar and dropping to $0.988.
By losing over 1.42% of its original value, TUSD dropped to the 5th position among stablecoins ranked on CoinmarketCap. As of this writing, the embattled stablecoin had a market cap of $1.89 billion, falling behind USDT, USDC, DAI, and FDUSD.
The TUSD depeg reminded crypto users of the USTC depeg of 2022. Some reactions projected trust issues to be in the background of the ongoing challenge, just like it was with USTC and Do Kwon. In this case, some users have blamed the situation on Justin Sun, the brain behind the TUSD stablecoin.
Adam Cochran, a prominent crypto analyst, referred to the embattled stablecoin as “Justin Sun’s scammy asset.” In a recent post on X (formerly Twitter), Cochran commended Binance for not supporting TUSD in its latest pools. He suggested that TUSD should not be treated as a first-class asset.
TUSD has posted a rebound after the drop and traded at $0.9917 as of the time of writing. The recovery started today after the price dropped as low as $0.9685, according to data from the Binance exchange trading page.
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