TUSD stablecoin collapsed by 10%
Date: 2023-06-28 Author: Karina Ziganova Categories: BLOCKCHAIN
The stablecoin TrueUSD (TUSD) again lost its peg to the US dollar — on the cryptocurrency exchange, Binance.US token fell in price by 10% to $.90.
At the moment, the TUSD/USDT pair was trading at $0.9007 on the Binance.US, and on the global Binance platform at $0.9984.
One of the Twitter users under the nickname Parrot Capital believes that the deposit of stablecoins usually starts with Binance.US and then spreads to other platforms. However, some users believe that the matter is in the problems of Binance.US in the United States.
At the beginning of the month, the TrueUSD stablecoin was already losing its peg to the dollar due to the suspension of token minting through Prime Trust. Then the price of the token dropped to $0.9964, but soon recovered.
Troubled TUSD
TUSD fell in price shortly after the report on the token's reserves. It revealed that the issuer of TUSD – TrustToken – held approximately $26,000 worth of stablecoin-backed assets with a U.S. depository institution that was ordered to stop deposits and withdrawals.
In addition, prior to this, TrustToken announced that it would stop converting the stablecoin into the US dollar due to problems with the Prime Trust depository. Thus, the issuer curtailed deposits and payments on accounts. In addition to TUSD, stablecoin holders have lost the ability to cash out other products from TrustToken like TAUD, TCAD, and TGBP through a troubled depository.
How Binance Believed in TUSD
TUSD became the fifth stablecoin by market capitalization after Paxos discontinued the Binance stablecoin (BUSD) in February. As a result, the crypto exchange had to look for an alternative stablecoin.
So the choice of the platform fell on TUSD. Already in mid-March, the first trading pairs with TUSD — BNB/TUSD, BTC/TUSD, ETH/TUSD, TUSD/USDT, USDC/USDT and USDP/USDT — were launched on Binance. In April, the stablecoin launched on the BNB Chain blockchain as a native token. Later, due to problems with TUSD, Binance removed commissions in stablecoin trading pairs, despite the fact that the exchange had previously abandoned this practice.
