TrueUSD (TUSD), one of the leading stablecoin, is facing challenges in keeping its value equivalent to the US dollar.
Currently, TUSD’s trading value has deviated from its intended $1 peg and stands at $0.988, according to recent data from CoinMarketCap. This deviation indicates an unexpected shift in market dynamics. This variation is a clear sign of the current unbalanced market conditions.
Binance, a major player in the cryptocurrency exchange sector, has seen a surge in TUSD sell-offs.
The past day alone has seen sales of TUSD exceed $444 million, significantly higher than the $301 million in purchases. This $142 million gap in trade volume indicates a predominant bearish trend among TUSD investors and traders.
In a recent interview with CoinDesk, Bradley Park, a CryptoQuant analyst, offered insights into the struggles faced by TUSD.
Park attributed TUSD’s difficulties to its connection with Justin Sun and pointed out the steady decrease in its market cap. He believes that this downward trajectory is partly due to the recent security incidents at HTX and Poloniex, which have undermined investor confidence.
Additionally, Park highlighted the influence of Binance’s recent policy shift, which removed trading fees for FDUSD, a currency by First Digital, across various crypto pairs. This move has indirectly affected TUSD’s market position.
Binance’s strategy, which now favors FDUSD over TUSD for staking in new token launches, has also played a role.
The exclusion of TUSD from Binance‘s Launchpad staking options in favor of FDUSD seems to have swayed investor interest towards FDUSD, evident in the rising trade volumes for FDUSD simultaneous with the devaluation of TUSD.
According to Park, TUSD’s absence in the Launchpad pool led to a sell-off, contributing to its current value drop.
Addressing the growing concerns about TUSD’s financial transparency, a Techteryx spokesperson, representing TUSD, assured that their financial attestations are on track. They debunked any rumors suggesting the contrary and clarified that Justin Sun holds no stake in Techteryx, countering one of the major concerns among market experts.
