TrueUSD (TUSD) Plummets Below $1 Peg
TrueUSD (TUSD), the stablecoin associated with Justin Sun, has experienced a significant fall below its $1 peg, with holders reportedly converting hundreds of millions of TUSD to rival stablecoin Tether (USDT).
The depegging event coincides with outsized selling on Binance, where traders have sold over $339.2 million worth of TUSD in the last 24 hours, resulting in a net outflow of $42.3 million.
On Jan. 15, around 11:00 am UTC, TUSD plummeted to $0.984, marking a 1.3% deviation from its intended $1 peg.
The substantial sell-off on Binance has raised concerns, especially since on Jan. 10, reports suggested TrueUSD faced challenges providing real-time attestations of its reserves, hinting at potential undercollateralization.
⚠️ $TUSD continues its march down off the Peg on Poloniex, while market cap dives
— Rho Rider (@RhoRider) December 16, 2023
It’s doing ~$3M/day volume on there (prob wash traded). Meanwhile the price on Binance remains fairly steady.
The big ❓ is why isn’t anyone taking the nearly 10% arb?#JustinSunIsSetting https://t.co/qCUEZebLuk pic.twitter.com/oTo3JTPvnH
Pseudonymous user Rho Rider first highlighted issues with TUSD on Dec. 16, pointing to an arbitrage opportunity due to its trading discrepancies on Poloniex and Binance.
TUSD’s price on Poloniex was nearly 8% below its peg, while it remained stable at $0.99 on Binance.
Questions linger about the sell-off’s correlation with TUSD’s absence from Binance’s Manta (MANTA) launch pool initiative, as users speculate on Crypto X.
Attempts to withdraw TUSD from Poloniex reportedly remain unsuccessful, adding to the uncertainty surrounding the stablecoin’s recent troubles.
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