TrueUSD stablecoin will drop $330M holders in TUSD
Justin Sun-linked stablecoin TrueUSD (TUSD) has fallen below the $1 peg amid reports that holders are shelling out hundreds of millions worth of TUSD in exchange for rival stablecoin Tether (USDT).
TUSD fell sharply below the peg for the first time on January 15, around 11:00 am UTC, to $0.984 at 11:15 pm. At press time, TUSD is trading at $0.988, 1.3% below the projected $1 peg, according to CoinMarketCap data.
The exchange event comes amid a flurry of TUSD sales on crypto exchange Binance.
As of publication, traders sold more than $339.2 million worth of TUSD on Binance in the last 24 hours, compared to $296.8 million worth of buy orders, showing a total net outflow of $42.3 million.
In the year On January 10, reports surfaced that TrueUSD was having trouble posting real-time credentials of its holdings, suggesting that the stablecoin may be unlinked.
TUSD's real-time credentials stopped working as of yesterday, which means it's been reported that it hasn't been collected much. (see status description on picture)@tusdio @The_Network Any comments? pic.twitter.com/s4vsa7Gz4o
— Symbio (@NoCryptFish) January 10, 2024
According to a report from Protos on January 10, the system encountered several errors with its API and was unable to provide the US dollar value for the collateral.
Anonymous X user Rho Rider first drew attention to his issues with TUSD in a Dec. 16 X post when he applied for TUSD's arbitration business.
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TUSD has been trading below $0.92 on Poloniex for weeks, down 8%, while the price was stable at around $0.99 on Binance.
“The big one [question] Why doesn't one take nearly 10% Arab? asked Rho.
⚠️ $TUSD Continues Downward From Peg on Poloniex, As Market Ceiling Plunges
On top of that, it's doing ~$3m/day in volume (probe sink trades). Meanwhile, the price on Binance is fairly stable.
The big one ❓ Why doesn't anyone take nearly 10% Arab? #JustinSunIsSetting pic.twitter.com/oTo3JTPvnH
— Rho Rider (@RhoRider) December 16, 2023
Rho confirmed that the arbitrage trade is not possible as “clear explanation” users are still unable to withdraw or deposit TUSD on Poloniex.
According to messages sent in the Poloniex Telegram group seen by Cointelegraph, users were unable to withdraw TUSD from the exchange.
Cointelegraph contacted TrueUSD and Poloniex for comment but did not immediately receive a response.
Several users on Crypto X have also speculated that TUSD may be related to Binance's Manta (MANTA) launch pool, which is not listed as one of the assets behind the launch.
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