1. BITBILIHome
  2. Article

TUSD depegs to $0.9 on crypto exchanges – Here’s why

• 69 views

TL;DR Breakdown

  • TUSD trades below Tether as Crypto Twitter worries about former FTX auditor Armanino’s rebranded outlet The Network Firm’s relationship with TrueUSD.
  • Early this month, traders bet against TUSD amid claims that the stablecoin project leverages Prime Trust to issue and redeem tokens.
  • From Terra LUNA’s experience crypto investors worry that TUSD depeging could usher in another crypto winter.

Description

The TUSD market is in the red turf. TrueUSD (TUSD), a dollar-pegged stablecoin, is trading at a discount to its counterpart tether (USDT) on Binance.US, Binance‘s US subsidiary. While the Bitcoin and crypto markets have been incredibly positive in recent days as a result of spot ETF news, gloomy clouds are building over the market … Read more

The TUSD market is in the red turf. TrueUSD (TUSD), a dollar-pegged stablecoin, is trading at a discount to its counterpart tether (USDT) on Binance.US, Binance‘s US subsidiary. While the Bitcoin and crypto markets have been incredibly positive in recent days as a result of spot ETF news, gloomy clouds are building over the market once again. Will this be another crypto winter?

The latest crypto drama could be the stablecoin TrueUSD (TUSD), which has recently lost its peg to the US dollar. The context is the most recent PrimeTrust discoveries and concerns regarding the stablecoin’s complete reserve backing.

TUSD loses its peg to the US dollar

At the time of publication, the TUSD/USDT pair was trading at 99 cents on Binance.US, having reached a low of 80 cents on Wednesday, according to data from the charting platform TradingView. The pair traded for approximately $0.9980 on Binance.

.9 on crypto exchanges – Here’s why" data-src="https://lh4.googleusercontent.com/Rl3cf8GWC6UzgvovrDepTIiMmZY8TYelQnbYIebhd4-BPOFxTe46Am5N_xEbH0E5IMCaIper9gxVGDVwSdFL-iAVO-Ikw8ipEz_qCb_GdnlJNZrY7s8Xoy8J0kqVvxg4d1touHKCQ2UzTXKaN_kstjk" class="lazyload">TUSD depegs to <img decoding=.9 on crypto exchanges – Here’s why" data-src="https://lh4.googleusercontent.com/Rl3cf8GWC6UzgvovrDepTIiMmZY8TYelQnbYIebhd4-BPOFxTe46Am5N_xEbH0E5IMCaIper9gxVGDVwSdFL-iAVO-Ikw8ipEz_qCb_GdnlJNZrY7s8Xoy8J0kqVvxg4d1touHKCQ2UzTXKaN_kstjk" class="lazyload j-lazy">.9 on crypto exchanges – Here’s why" src="https://en.bitbili.com/wp-content/uploads/2023/06/frc-67d22997199d6987fffeee886fe42840.png">TUSD depegs to <img decoding=.9 on crypto exchanges – Here’s why" src="https://en.bitbili.com/wp-content/themes/justnews/themer/assets/images/lazy.png" data-original="https://en.bitbili.com/wp-content/uploads/2023/06/frc-67d22997199d6987fffeee886fe42840.png">

The volatility of stablecoins, which have evolved as financing currencies over the past three years, frequently feeds into the market as a whole. So far, TUSD’s volatility has had no effect on the broader market, with bitcoin (BTC) continuing to trade within familiar ranges above $30,000.

TUSD, with a market cap of $3 billion, poses a lower systemic risk to the market than Tether, which has a market cap of $83 billion. The adverse volatility of TUSD on Binance.US comes hours after the token’s reserve report revealed the project held $26,000 in assets backing the stablecoin at a U.S. depository entity that had been instructed to cease withdrawals.

Red flags surrounding the present TUSD market

TrueUSD has been criticized for its lack of transparency for a long time. According to speculation, TrueUSD is owned by Tron founder Justin Sun. Still, the official emitter (Techteryx) denies this and has threatened to file a defamation lawsuit against those who make such claims. They also reference the real-time reserve statement provided by Chainlink and banking partners.

.9 on crypto exchanges – Here’s why" data-src="https://lh5.googleusercontent.com/IBKeJPAC0yGYo1usWFuzR5O4iCSTEmwLVpW3kc6xwKHX3tWfse0Zp0FgKOq1Qsw7xjYlKne9b1Qx6edxQ6VS2AP-nfrVcfV4zNak2ShxntumCQg5NojtOLWigfzDt0Ky0v-gdMs7KfgeXKsJLTTPq9E" class="lazyload">TUSD depegs to <img decoding=.9 on crypto exchanges – Here’s why" data-src="https://lh5.googleusercontent.com/IBKeJPAC0yGYo1usWFuzR5O4iCSTEmwLVpW3kc6xwKHX3tWfse0Zp0FgKOq1Qsw7xjYlKne9b1Qx6edxQ6VS2AP-nfrVcfV4zNak2ShxntumCQg5NojtOLWigfzDt0Ky0v-gdMs7KfgeXKsJLTTPq9E" class="lazyload j-lazy">.9 on crypto exchanges – Here’s why" src="https://en.bitbili.com/wp-content/uploads/2023/06/frc-0bc5f88ce6caf541c960c9366044672a.png">TUSD depegs to <img decoding=.9 on crypto exchanges – Here’s why" src="https://en.bitbili.com/wp-content/themes/justnews/themer/assets/images/lazy.png" data-original="https://en.bitbili.com/wp-content/uploads/2023/06/frc-0bc5f88ce6caf541c960c9366044672a.png">

However, the prospect of legal action cannot prevent critics from questioning TrueUSD’s corporate structure and demanding accountability. The USD reserves of the $3.15 billion stablecoin are vital to the market stability of all cryptocurrencies. The crash of Do Kwon’s Terra is a true and tested example of what will happen to the crypto market if another stablecoin depegs.

Adam Cochran, a partner at Cinneamhain Ventures, is the most vocal opponent of TrueUSD. Today, the expert raised multiple red flags in a Twitter thread. According to Cochran’s research, the auditor certifying the USD audits at Prime Trust is the former FTX auditor who reopened shop under a different name following the FTX debacle.

The Analyst goes on to point out that TUSD’s chain oracle, which is in charge of validating reserves, is made up of only 17 separate nodes, all of which come from the same source, with this one corporation releasing only one number.

The analyst also identifies the alleged inability to redeem TUSD as a red flag. According to Cochran, several individuals who attempted to redeem the token had their tokens returned to the chain. A few individuals who successfully redeemed their tokens on Binance claim to have received USDT instead of USD.

.9 on crypto exchanges – Here’s why" data-src="https://lh4.googleusercontent.com/2gSoRPhgSccYCutdXMVmCnECcwGg_mGGcW0jElRKofTh5Zt6Yj4v4G7yiNReDqPYDfzdXr99Kj9TgGvoNbRoTPLyfTQwEuD-wsh8REAAbU-U_vkE8TXXWRzJukbE5bPeP2oEi9_peViSghSNMiY_6Tw" class="lazyload">TUSD depegs to <img decoding=.9 on crypto exchanges – Here’s why" data-src="https://lh4.googleusercontent.com/2gSoRPhgSccYCutdXMVmCnECcwGg_mGGcW0jElRKofTh5Zt6Yj4v4G7yiNReDqPYDfzdXr99Kj9TgGvoNbRoTPLyfTQwEuD-wsh8REAAbU-U_vkE8TXXWRzJukbE5bPeP2oEi9_peViSghSNMiY_6Tw" class="lazyload j-lazy">.9 on crypto exchanges – Here’s why" src="https://en.bitbili.com/wp-content/uploads/2023/06/frc-468b355d93f98c33c7da51e233a702cf.png">TUSD depegs to <img decoding=.9 on crypto exchanges – Here’s why" src="https://en.bitbili.com/wp-content/themes/justnews/themer/assets/images/lazy.png" data-original="https://en.bitbili.com/wp-content/uploads/2023/06/frc-468b355d93f98c33c7da51e233a702cf.png">

A former employee of TrustToken, the company that created TrueUSD before selling it to Asian conglomerate Techteryx, has reportedly stated that he has proof that users are not able to redeem USD and are instead directed to move it to Binance and sell it there.

Concerns rise following Prime Trust fiasco

Early this month, traders placed bearish bets on TUSD after suspicions that the stablecoin project mints and redeems tokens through the controversial crypto service provider Prime Trust. TrueUSD later confirmed that it is not exposed to Prime Trust.

Moreover, the recent revelations regarding Prime Trust cast further doubt on TrueUSD’s reserves. Recent documents indicate that Prime Trust’s losses trace back to 2021. In 2021, Prime Trust allegedly lost access to legacy wallets and used customer funds to purchase back crypto.

The trust’s total liabilities amount to $150 million. Prime Trust owes its consumers $85,670,000 in fiat currency but only has $2,904,000 in its possession. In crypto, the custodian owes its clients $69,509,000 but only has $68,648,000 in assets.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:TUSD depegs to $0.9 on crypto exchanges – Here’s why

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月30日 23:46
Next 2023年7月1日 00:48

Related articles

  • Bitfinex reveals strategic Bitcoin holdings amid market upswing

    TL;DR Breakdown Bitfinex has disclosed that it holds Bitcoin as a long-term investment, although specific figures are not revealed. Paolo Ardoino, Bitfinex’s CTO, advocates for crypto exchanges to reinvest profits into Bitcoin, highlighting Bitfinex’s commitment. Tether plans to allocate up to 15% of its profits to Bitcoin, shifting its reserves away from U.S. government debt. Description In a recent revelation, Bitfinex has disclosed its strategic commitment to Bitcoin (BTC). Historically, the platform has retained some of its trading fee earnings in Bitcoin. This move showcases Bitfinex’s unwavering faith in the pioneering cryptocurrency. However, the exact figures remain undisclosed. Bitfinex’s Chief Technical Officer, Paolo Ardoino, took to Twitter on Sunday. He emphasized … Read more In a recent revelation, Bitfinex has disclosed its strategic commitment to Bitcoin (BTC). Historically, the platform has retained some of its trading fee earnings in Bitcoin. This move showcases Bitfinex’s unwavering faith in the pioneering cryptocurrency. However, the exact figures remain undisclosed. Bitfinex’s Chief Technical Officer, Paolo Ardoino, took to Twitter on Sunday. He emphasized that crypto exchanges, which have reaped significant benefits from Bitcoin, should…

    Article 2023年9月5日

  • Aptos price analysis: APT slumps down to $8.30 range as bears take over

    TL;DR Breakdown Aptos price analysis shows a downtrend in today’s market. APT/USD has been down by 2.39% in the past few hours. The resistance level for the APT is at the $8.78 mark. The latest Aptos price analysis shows a downtrend in the market. APT/USD has fallen to $8.30 in the past few hours, registering a nearly 2.39% decline. Market bears have taken control of the APT price and are pushing it lower with each passing hour. The market for APT opened today’s session with bullish sentiment, with prices rising to $8.53. However, the bullish momentum was short-lived, and bears started taking control of the market, pushing it lower in subsequent hours. Aptos price analysis on a daily chart: APT remains in a descending channel The daily chart for Aptos price analysis shows that APT /USD is still moving within the descending channel. The selling pressure has increased in the past few hours, and APT is now trading near the lower channel line. The resistance level for APT/USD is at the $8.78 mark, which coincides with the upper trend line…

    Article 2023年6月4日

  • Canto blockchain migrates to Ethereum’s Layer 2, leveraging Polygon’s technology to revolutionize ‘neofinance’

    TL;DR Breakdown Canto, a Layer 1 blockchain, is migrating to Ethereum’s Layer 2 with the aid of Polygon’s Chain Development Kit, aiming to focus on real-world assets and contribute to a “neofinance” future. The migration will allow Canto to be part of a unified ecosystem connected to Ethereum, enhancing user security through best-in-class zero-knowledge proofs and promoting permissionless sovereignty and public liquidity. Description In a significant development for the blockchain community, Canto, a Layer 1 blockchain initially launched in 2022, announced its migration to Ethereum‘s Layer 2 (L2). The migration is facilitated by Polygon’s Chain Development Kit (CDK), a technology that enables the creation of zero-knowledge (ZK) chains. This move aims to focus on real-world assets and is … Read more In a significant development for the blockchain community, Canto, a Layer 1 blockchain initially launched in 2022, announced its migration to Ethereum‘s Layer 2 (L2). The migration is facilitated by Polygon’s Chain Development Kit (CDK), a technology that enables the creation of zero-knowledge (ZK) chains. This move aims to focus on real-world assets and is seen as a step…

    Article 2023年9月20日

  • NFT artists lose fortune as royalties plummet

    TL;DR Breakdown NFT market sees declining artist incomes due to slashed royalties. Leading NFT platforms Blur and OpenSea reduce royalties to boost sales. Trading volumes dropped 95% since January 2022. Description Artists behind the once-thriving Non-Fungible Token (NFT) market are grappling with dwindling fortunes. The world of digital collectibles, which once soared to unimaginable heights, is now undergoing a massive shake-up. One might argue it’s the inevitable result of over-speculation and greed. Markets Nose-Dive, Creators Bear the Brunt Leading NFT platforms Blur and OpenSea, perhaps in … Read more Artists behind the once-thriving Non-Fungible Token (NFT) market are grappling with dwindling fortunes. The world of digital collectibles, which once soared to unimaginable heights, is now undergoing a massive shake-up. One might argue it’s the inevitable result of over-speculation and greed. Markets Nose-Dive, Creators Bear the Brunt Leading NFT platforms Blur and OpenSea, perhaps in desperation or sheer audacity, have opted for slashing the royalties handed out to artists. It’s a transparent bid to revitalize the sagging buying and selling activity. These platforms seem to be in a free-fall race, putting…

    Article 2023年8月7日

  • White House and Republicans at standstill in debt ceiling talks

    TL;DR Breakdown Bipartisan talks between the White House and Republican congress members concerning the raising of the $31.4 trillion debt ceiling have reached a standstill, with no additional meetings scheduled. The deadline of June 1, as set by the Treasury Department, looms ahead. If an agreement is not reached by then, the federal government could default on its debts, potentially triggering a severe economic crisis. Republicans insist on substantial spending cuts as a prerequisite for approving an increase in the federal government’s borrowing limit, while the White House acknowledges “serious differences” between the two parties. An important juncture has been reached in Washington. Two essential discussions between the White House and Republican congress members, centered around raising the debt ceiling, have resulted in a deadlock, marking an impasse in the nation’s fiscal conversation. The nation’s debt ceiling currently sits at $31.4 trillion, and the challenge of altering this figure remains substantial. A matter of urgency The federal government is fast approaching a crucial date; June 1. If a resolution isn’t reached by this date, the Treasury Department has warned of…

    Article 2023年5月22日
TOP