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.
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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.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
