TrueUSD (TUSD) broke away from the US dollar this week, marking the second break from $1 in the past two months. The loss of parity with the US dollar and the drop to $0.9685 reflects a familiar situation for many cryptocurrency users. It reminded them of the USTC depeg in 2022 before the infamous TerraLUNA incident.
According to reports, a mass sale by whale addresses caused an unnatural movement in the price of TUSD last Monday. Data from the Binance exchange showed that the lack of TUSD mining on one of its latest Launchpools led to the dump of the stablecoin. The cryptocurrency exchange recorded TUSD outflows of $377.2 million in 24 hours.
This is the second notable decline in the TUSD in the past two months. The previous event occurred in November 2023, when the stablecoin lost parity with the US dollar and fell to $0.988.
Losing over 1.42% of its original value, TUSD fell to 5th place among stablecoins ranked on CoinmarketCap. At the time of writing, the conflicting stablecoin had a market capitalization of $1.89 billion, lagging behind USDT, USDC, DAI, and FDUSD.
The TUSD depeg reminded crypto users of the USTC depeg of 2022. Some reactions projected trust issues into the backdrop of the ongoing challenge, just as was the case with USTC and Do Kwon. In this case, some users attributed the situation to Justin Sun, the mastermind behind the TUSD stablecoin.
Adam Cochran, a prominent crypto analyst, called the stablecoin “Justin Sun’s scam asset.” In a recent post on X (formerly Twitter), Cochran praised Binance for not supporting TUSD in its latest pools. He suggested that TUSD should not be treated as a first-class asset.
TUSD rebounded after the decline and was trading at $0.9917 as of this writing. The recovery began today after the price fell to as low as $0.9685, according to data from the trading page of the Binance exchange.
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