TrueUSD Stablecoin Continues to Depeg as Holders Flees to USDT

The significant outflow could be attributed to TrueUSD’s January 10 report, where the company informed users about a full upgrade to their fiat reserve audit system in collaboration with the Hong Kong-based accounting firm MooreHK. 

TrueUSD (TUSD), a stablecoin supposedly associated with Chinese-born crypto entrepreneur Justin Sun, has been on a downward trajectory since January 15, depegging from its 1:1 benchmark to the US dollar.

The stablecoin, which was supposed to maintain its stability at all times, even in the face of market volatility, dropped slightly below the $1 value to $0.984 on Monday following reports of users dumping their holdings for its rival stablecoin, USDT.

TrueUSD Stablecoin Drops to $0.9708 Before Slightly Recovering

On Thursday morning, the token dropped to as low as $0.9708 in Hong Kong before sharply recovering to $0.9723 at around 11:15 a.m. in Asia.

However, at press time, the stablecoin has continued towards regaining its $1 peg, now trading at $0.9893 with a market capitalization of $1.89 billion, according to CoinMarketCap data.

The depegging comes as traders are selling their TUSD holdings on Binance, the world’s largest cryptocurrency exchange in the industry.

In the past 24 hours, Binance data shows that users have dumped approximately $238.3 million worth of TrueUSD through the TUSD-USDT trading pair. Concurrently, buyers made purchases amounting to about $83.8 million, resulting in a net outflow of approximately $154.5 million.

On January 15, the exchange recorded a total net outflow of around $42.3 million after users sold over $339.2 million worth of the stablecoin with a buy order of $296.8 million in TUSD.

TUSD Dropped Nearly 10% on Poloniex

The significant outflow could be attributed to TrueUSD’s January 10 report, where the company informed users about a full upgrade to their fiat reserve audit system in collaboration with the Hong Kong-based accounting firm MooreHK.

The firm also said in a statement that the enhanced attestation report now provides additional details about the reserve funds held by its financial and fiduciary partners.

Before this report, a pseudonymous member of the crypto community raised concerns on X (formerly Twitter), suggesting that TrueUSD might be undercollateralized as it faced difficulties posting real-time attestation of its reserve.

That same day, Protos reported that TrueUSD encountered issues with its API, unable to provide a US dollar value for its collateral assets.

However, a different member of the crypto community first drew attention to TrueUSD’s situation in a December 16 post on the Elon Musk-owned social media platform.

The user, with the name Rho Rider, revealed that the token had been trading below its supposed $1 peg at $0.92 for weeks on Poloniex, while maintaining a seemingly stable price of around $0.99 on Binance.

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Source: https://www.coinspeaker.com/trueusd-depeg-holders-usdt/