The crypto market is once again facing unsettling developments, as the potential for an event similar to the 2022 UST crash is causing anxiety among investors. The depegging of stablecoins from their intended $1 value is a significant concern, particularly as it pertains to TUSD, which has recently dropped to $0.9949.
TUSD, initially heavily supported by Binance, has been the subject of debate for some time. Experts, including CAPO, have suggested that past price surges were artificially induced by Binance using TUSD. This has been a topic of discussion for many, including the CEO of CryptoQuant.
The recent devaluation of TUSD to below $1, known as depegging, has raised alarms. Despite TUSD’s prolonged period below the $1 mark, it has managed to maintain a relatively stable level. However, the issue has resurfaced on social media, increasing the risk of a growing fear, uncertainty, and doubt (FUD) wave.
As the fourth-largest stablecoin, TUSD’s instability could lead to a sudden FUD wave. Investors are advised to prepare for such an event and to consider distributing their risk across other major stablecoins to remain cautious.
The resurgence of depeg discussions on social media platforms suggests that the potential for an escalation in FUD is real, highlighting the importance of vigilance in the crypto investment community.