TrueUSD (TUSD) has not recovered from a de-pegging crisis as over $238 million worth of TUSD was sold on Binance in the last 24 hours, driving the stablecoin’s price down to $0.9708. The significant sell-off has further deepened the de-pegging issue.
The price of TUSD plummeted to $0.9708 around 06:00 today, but current data shows some recovery, with the coin trading around $0.9882. This follows a loss of its dollar peg on January 15th when users reportedly sold hundreds of millions of dollars in TUSD.
Data from Binance reveals that in the last 24 hours, approximately $238.3 million worth of TUSD was sold through the TUSD/USDT trading pair, with only $83.8 million bought, indicating a net outflow of roughly $154.5 million for the stablecoin.
On January 10th, concerns arose when TrueUSD suspended real-time verification of its reserves, leading to suspicions of inadequate collateralization. Despite efforts to control the situation, the company has been unsuccessful in regaining stability.
TrueUSD announced on January 17th a complete overhaul of its fiat reserve audit system in partnership with Hong Kong-based accounting firm MooreHK. Market maker Keyrock’s APAC Business Development Director, Justin d’Anethan, suggests that TUSD’s de-pegging is primarily due to Binance Launchpool’s promotion of BNB and FDUSD over TUSD. Additionally, Nick Ruck from ContentFi Labs points to a $100 million hack at Poloniex, associated with TRON founder Justin Sun, as a potential factor in TUSD’s de-pegging crisis.