Stablecoin TrueUSD (TUSD) experienced a significant decline this morning, falling to around $0.9685.
TrueUSD Loses Value and Drops Below $0.9685
TUSD fell below the US dollar peg on January 15, and holders reportedly sold hundreds of millions worth of stablecoins.
Data from Binance showed that in the last 24 hours, users sold approximately $238.3 million worth of TrueUSD via the TUSD-USDT trading pair, while investors purchased approximately $83.8 million. This indicates a net outflow of approximately 154.5 million dollars.
On January 10, TrueUSD reportedly paused real-time verifications of its reserves, leading one user to suspect the company was unable to collateralize tokens. The company later attributed the incident to several internal errors.
TrueUSD announced on Wednesday that it has “fully fixed its fiat reserve auditing system” in partnership with Hong Kong-based accounting firm MooreHK.
The upgraded attestation report now includes additional details about reserve funds under the custody of financial and fiduciary partners.
Justin d'Anethan, head of APAC business development at crypto market maker Keyrock, said earlier this week that the recent announcement of MANTA in Binance's launchpool program and the need to invest in BNB or FDUSD instead of other stablecoins such as TUSD will increase investors selling TUSD. He said it might have caused it.
TrueUSD, thought to be associated with TRON founder Justin Sun, may also have been affected by the $100 million security breach at Sun's cryptocurrency exchange Poloniex, according to Nick Ruck, chief operating officer of ContentFi Labs.
At the time of this writing, the price of TUSD was trading at $99.00.
*This is not investment advice.
