Stablecoin TrueUSD ( TUSD
-0.34%
) fell to around $0.9708 in Asia on Thursday morning. TUSD has since recovered slightly, trading around $0.9723 at 11:15 a.m. in Hong Kong, according to The price details of the block.
The stable coin fell below the peg to the US dollar on January 15 with reports of holders selling hundreds of millions of TUSD. Binance data showed that users sold about $238.3 million worth of TrueUSD via the TUSD-USDT trading pair in the last 24 hours, while traders bought about $83.8 million. That indicates a net outflow of about $154.5 million.
On January 10, reports surfaced that TrueUSD had halted real-time attestations of its reserves, with one X user suspects the company’s inability to provide the tokens as collateral. The company later attributed the incident to several internal errors, according to Protos.
RealUSD said On Wednesday, the company announced that it has “completely upgraded its fiat reserve audit system” in partnership with Hong Kong-based accounting firm MooreHK. “The improved certificate report contains additional details about the reserve funds held by its financial and fiduciary partners,” TrueUSD said in the statement.
“With the recent announcement of MANTA in Binance’s launch pool program and the need to stake BNB or FDUSD – at the expense of other stablecoins like TUSD that may have been used for launch pool staking in the past – it appears that a horde of investors is taking the latter for the first sells,” Justin d’Anethan, head of APAC business development at crypto market maker Keyrock, explained to The Block earlier this week.
TrueUSD, which is widely believed to be related to TRON founder Justin Sun, could also have been affected by the $100 million security breach on Sun’s cryptocurrency exchange Poloniex, according to Nick Ruck, chief operating officer of ContentFi Labs.
The stablecoin issuer previously told The Block that the short-term mass arbitrage following the Binance Launchpool program is part of “normal market dynamics and liquidity adjustment.”
TrueUSD did not immediately respond to The Block’s request for additional comment on Thursday.
