TrueUSD (TUSD) Faces Depegging Challenges as Market Concerns Intensify
The stability of TrueUSD (TUSD) was disrupted lately, with its value dropping to $0.995 due to multiple factors.
Among these were substantial sell-offs following Changpeng “CZ” Zhao’s departure as Binance’s CEO and reports suggesting terrorists favor Justin Sun’s Tron over Bitcoin for illicit financial activities. Presently, TUSD is trading at $0.996 after trying to restore its intended value.
Concerns emerged in the market as TrueUSD began to deviate from its peg early in the week. Traders reacted by offloading their holdings, amplifying worries post CZ’s exit from Binance. The deviation worsened on November 27 and 28, leading to TUSD plummeting to as low as $0.995.
Riyad Carey, a Kaiko researcher, highlighted the instability of TUSD’s peg due to significant market sell-offs, including a single order worth $3 million.
Additionally, a Reuters report implicating Justin Sun’s Tron in terrorist financing activities, compared to Bitcoin, further impacted TUSD’s stability. The report referenced seizures by Israel’s National Bureau for Counter Terror Financing unit, freezing 143 Tron wallets from July 2021 to October 2023.
Justin Sun responded, asserting Tron’s decentralized nature akin to Bitcoin and Ethereum. He emphasized the Tron team’s dedication to combating terrorist financing while prioritizing decentralization and ensuring asset safety, reliable transactions, and affordability.
As a consequence of the association with former Binance CEO CZ and Tron founder Justin Sun, significant liquidations affected TUSD. Despite multiple efforts, the stablecoin has struggled to re-establish its peg and is currently trading at $0.996.