According to CoinGecko data, the stablecoin TrueUSD (TUSD) started to detach slightly from its peg at 8 PM on Monday (15th) Taipei time. As of the time of this article, the price of TUSD is $0.9866, a decrease of approximately 1.3% (based on a $1 benchmark).
Source: CoinGecko
According to a report by Cointelegraph, during the detachment period of TUSD, there was a significant amount of selling on the cryptocurrency exchange Binance. In the past 24 hours, traders have sold over $339.2 million worth of TUSD on the Binance platform, while the buy orders were only valued at $296.8 million, resulting in a net outflow of $42.3 million.
Source: Binance
Furthermore, CoinGecko data also shows a significant decrease in the market capitalization of TUSD between 00:40 and 00:45 this morning, dropping from around $2.02 billion to $1.91 billion, suggesting a possible large redemption of TUSD.
Source: CoinGecko
The detachment of TUSD may be related to the latest Launchpool by Binance. In this Launchpool (with Manta as the project), TUSD mining pools were not available as in previous phases. Additionally, the trading pair of MANTA/TUSD was not listed on the first day of MANTA token’s listing, which may have led to the sell-off of TUSD and the subsequent detachment. On the other hand, while TUSD started to detach, the stablecoin FDUSD experienced a slight premium on Binance.
In the past two months, there have been reports in the market that raised concerns about TUSD. On January 10th, the foreign media “Protos” reported that TrueUSD encountered difficulties when releasing real-time reserve proofs, as there were some errors in its API, which prevented it from providing the dollar value for its collateral assets.
In addition, an anonymous user, Rho Rider, pointed out potential arbitrage trading of TUSD on December 16th. The shared images showed that the price of TUSD on the Poloniex exchange reached $0.92 several times in a few weeks, with a detachment of nearly 8%. However, the price of TUSD on Binance remained stable at around $0.99. Rho questioned, “Why couldn’t anyone execute a nearly 10% arbitrage?”
