TrueUSD has deployed a new reserve audit system in an attempt to find a dollar peg.
TrueUSD (TUSD), a stablecoin associated with Tron founder Justin Sun, has deployed daily verification services from an accounting firm as it struggles to find a dollar peg.
On January 15, the TUSD stablecoin began to lose its dollar peg, to $0.984 at 11:15 pm UTC. The dip came as traders sold more than $339 million in TUSD on the Binance exchange in 24 hours. This brought the total cash flow to $42.3 million.
In the year In a January 18 X post, TrueUSD blamed the de-pegging incident on “community mining operations related to the Binance Launchpool,” which led to short-term arbitrage opportunities for traders.
Standard testimonials are carried out as part of our routine work, and any claims to the contrary are incorrect. We looked at the recent community mining activity related to Binance Launchpool, which resulted in short-term arbitrage opportunities.
— TrueUSD (@tusdio) January 18,
Users on X (formerly Twitter) speculated that Dipeg could be related to statscoin without being included as an asset in Binance's Manta launch pool initiative. Additionally, reports surfaced on social media on January 10 that TUSD was struggling to post backups in real time.
Big props to @binance for not supporting $TUSD in recent pools.
Justin Sun's cheat property he has mint keys should never be considered as a first class stable property.
Big step to clean up Binance for the sake of the industry by @_RichardTeng.
— Adam Cochran (@adamscochran.eth) (@adamscochran) January 15, 2024
After the Dipeg incident, the TrueUSD team announced that they have updated their fiat reserve audit system. The company has hired the services of the Moore Hong Kong accounting firm in addition to its current provider, The Network Firm, to provide daily verifications of the stablecoin's fiat reserves.
With the new system, the TrueUSD report includes details of reserves held by its financial partners. MooreHK CEO Michelle Chu said they will work with Network Firm to help TUSD users control the reserve.
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Despite efforts to establish a new system to verify fiat reserves, the value of stablecoins continues to decline. On January 18, the TUSD price dropped to $0.97, according to coin data tracker CoinMarketCap.
At the time of publication, the price of TUSD hovers around $0.99 on CoinMarketCap and Binance.
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