2024-01-16 18:22:47
TrueUSD (TUSD) broke away from the ideal $1 exchange rate on January 15 and fell to $0.984. As the news came out, speculation began as many investors parted with their stablecoins.
TUSD fell below $1
The Justin Sun-linked stablecoin fell below a fixed price of $1 amid reports that owners have already withdrawn hundreds of millions of dollars worth of TUSD and transferred it to rival stablecoins.
According to data from CoinMarketCap, TUSD began to slide below the fixed value at 11:00 AM on January 15th. By 11:15 p.m., it had already fallen to $0.984, the deepest drop since TUSD officially launched nearly six years ago.
TrueUSD exchange rate over the past 7 days
On January 10th reports reported that TrueUSD had difficulty sending out real-time confirmations of reserves. The difficulties suggested that the stablecoin may have been under-secured. This can be a risk as it suggests that in the event of a crisis there is not enough collateral available to meet redemptions.
After that, the Binance launched the MANTA launchpool on January 15, but excluding TUSD. Launchpad rewards new tokens to investors who pledge their assets for a certain period of time. Since TUSD was not an option, investors could turn to other stablecoins, including Binance’s new favorite, FDUSD.
Investors may turn to competing stablecoins
Coinciding with news of the split, market watchers have seen a spike in sell orders for TUSD on the Binance exchange. In parallel, USDT experienced a significant increase in capital.
Since the incident, at least $340 million worth of TUSD has been sold, while only $296.8 million of buy orders have taken place, for a total outflow of over $43 million. Meanwhile, the market capitalization of TrueUSD also decreased. It has fallen more than 6.4% in the last 24 hours, from $2 billion to $1.9 billion.
Although many rumors have surfaced, the reasons behind the move are not yet clear. What is certain is that the market capitalization of TUSD has fallen, while interest in FDUSD and USDT has increased. In addition, it seems to be confirmed that Binance has turned its full attention to FDUSD.
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