The US dollar stablecoin TUSD (TrueUSD), the fifth largest stablecoin by market value and once supported by Binance, has experienced significant decoupling since yesterday. CoinMarketCap data shows that TUSD began to fall rapidly from around 8:30 pm yesterday (15th), falling as deep as $0.9843, decoupling by nearly 1.6%. Before the deadline, it rebounded slightly and was temporarily quoted at $ 0.9876 .
42.3 million mg of TUSD net outflow
According to Cointelegraph reports , when TUSD decoupled, there was a huge amount of selling of TUSD on the cryptocurrency exchange Binance. Traders sold over $339.2 million worth of TUSD on Binance in the past 24 hours, while buy orders were only $296.8 million, for a total net outflow of $42.3 million.
As for the reason for the sharp sell-off of TUSD, some users on
TUSD suspends instant reserve proof again
However, doubts about TUSD have always existed. TrueUSD is issued by TrustToken and uses LedgerLens' real-time certification mechanism to verify the amount of reserve assets. This certification mechanism will automatically generate TUSD's bank asset mortgage records every day and be confirmed by The Network Firm. And can be downloaded from the official website.
However, on January 11, X account Symbio discovered that TUSD had once again suspended the release of instant proofs of its reserves, suggesting that the stablecoin may face undercollateralization.
The realtime attests of TUSD stopped working since yesterday, which potentialy means that it was reported as undercollatelised. (see status description in the pic) @tusdio @The_NetworkFirm any comments? pic.twitter.com/s4vsa7Gz4o
— Symbio (@NoCryptFish) January 10, 2024
TUSD unpegs 8% on Poloniex
X user Rho Rider's post on December 16 last year also drew attention to the TUSD issue. At that time, he pointed out the potential arbitrage doubts of TUSD.
TUSD has been trading below $0.92 on Poloniex for weeks, with a decoupling of over 8%, while on Binance the price has held steady around $0.99. Rho Rider couldn't help but wonder: Why isn't anyone doing arbitrage trading of nearly 10%?
Rho Rider concluded that the obvious explanation is that users cannot withdraw or deposit TUSD on Poloniex, making arbitrage trading impossible. But then the questions become: "Why is Poloniex still closed weeks after announcing the resumption of withdrawals?", "Why don't the exchanges (or market makers) do arbitrage themselves?".
$TUSD continues its march down off the Peg on Poloniex, while market cap dives
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
— Rho Rider (@RhoRider) December 16, 2023
TUSD closely related to Justin Sun?
It is understood that Justin Sun’s mother is a board member of TUSD, so TUSD is also related to Justin Sun In June last year, negative news such as Prime Trust, TUSD's foundry partner, temporarily suspended minting and was "directly taken over" by the US state of Nevada for bankruptcy investigation . This also made TUSD continue to face challenges, causing Binance to once again shift its focus to support FDUSD. .
Extended reading: Institutional revelations: TUSD, Huobi and Chinese shell companies are all related to Justin Sun family and partners
The latest data from CoinGecko shows that TUSD and FDUSD are the fifth and fourth largest stablecoins by market capitalization respectively. The former has a market value of approximately US$1.9 billion, down 21.8% in the past 30 days; the latter has a market value of approximately US$2 billion, with an increase of 22.3% in the past 30 days.
