TUSD Warns Holders to Convert BEP2-TUSD Tokens Before BNB Beacon Chain Decommission
In a significant development for TUSD holders, the TrueUSD team has issued an urgent warning to its users. The BNB Beacon Chain, a part of the BNB Chain ecosystem, is slated for decommissioning at the end of June. This move triggers immediate action from holders of BEP2-TUSD (TUSDB) tokens, as these assets will be delisted concurrently with the chain’s closure. To avoid potential asset loss, TUSD urges holders to convert their BEP2-TUSD into other network standards of TUSD tokens through two methods.
Conversion Options For BEP2-TUSD Holders
TUSD has outlined two primary pathways for holders to convert their BEP2-TUSD tokens, each with its distinct procedures and deadlines.
Option One: Conversion via Binance
The TUSD team recommends the first option, which involves using the Binance platform. Currently, Binance is accepting deposits of BEP2-TUSD tokens. This conversion process is available until March 31, post which the option will be invalid. After depositing tokens on Binance, users can engage in trading or explore other Earn products.
🚨Attention BEP2-TUSD holders!
🔐Act now to protect your assets affected by @BNBChain’s operations! Explore your options and safeguard your #TUSD in our latest Medium article.
👇More details: https://t.co/QpPOJfacKx
— TrueUSD (@tusdio) February 6, 2024
The process is relatively straightforward, requiring no additional action post-deposit, except when selecting the TUSD token of a different network standard upon withdrawal. Binance supports TUSD tokens adhering to the ERC20, BEP20, and TRC20 standards, providing users with a variety of options.
Option Two: Redemption via TUSD’s Official Website
The second option involves direct redemption through the official TUSD website. Given that BEP2-TUSD is a native token issued by TUSD, holders have the right to redeem their tokens directly.
This option is available until May 31, after which it will no longer be valid. To utilize this method, users must have a registered account with TUSD and have passed the KYC verification process. The redemption process is facilitated through the official TUSD website.
TUSD stablecoin has been depegging a lot recently. In January, stablecoin TrueUSD, associated with crypto figure Justin Sun, experienced a dip below its $1 peg. This downturn follows incidents where holders reportedly exchanged substantial amounts of TUSD for the rival stablecoin, Tether. The noticeable decline in TUSD’s value began around January 15 at 11:00 am UTC, with its worth dropping to as low as $0.984 by 11:15 pm.
Reports surfaced on January 10 indicating challenges for TrueUSD in providing up-to-date attestations of its reserves, raising concerns that the stablecoin might not be fully backed by adequate collateral.
BNB Chain To Replace Beacon Chain With BEP333
The BNB Chain, a decentralized network for smart contracts, announced its intention to phase out the Beacon Chain and introduce the BEP333. Detailed in a January 8 blog post, the BEP333, also referred to as the BNB Chain Fusion, aims to enhance security and improve the efficiency of asset utilization on the chain.
The BNB Beacon Chain, currently a key component of the network, focuses on staking and governance activities. The introduction of BEP333 is designed to facilitate a seamless transition from the existing dual-chain architecture of the BNB Chain to a more streamlined single-chain structure.
In light of these changes, BNB Chain has provided specific guidelines for its users. Notably, the statement reassures holders of and that there is no need for them to transfer their assets during this transition. However, this will result in multiple coins getting delisted from Beacon chain, resulting in a loss of funds if proper actions are not taken by users.
The blog clarifies that users who miss the initial transition period have the option to utilize the BEP299 Token Migration. This feature offers a reliable and decentralized method for users to retrieve their assets on the BSC after the Beacon Chain ceases operations.