1. BITBILIHome
  2. Article

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

• 174 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

  • Bitcoin mining stocks are dominating 2023 with over 200% yearly growth

    TL;DR Breakdown Bitcoin mining stocks, especially Cipher Mining (CIFR), have seen astounding growth in 2023, with CIFR rising almost 400%. Mainstream market indices pale in comparison to the gains observed in the Bitcoin mining sector, which outpaces even major tech stocks. Institutional investors are turning to Bitcoin mining stocks as alternatives to direct Bitcoin investment, but the volatile nature of the sector calls for caution. Description Bitcoin mining, once a niche market, has witnessed unprecedented growth in 2023, especially with stocks like Cipher Mining (CIFR) showcasing a spectacular near-400% rise. Despite a recent 10% dip in Bitcoin’s value, largely attributed to speculations about SpaceX’s possible sale of its crypto holdings, its annual increment stands firmly at 50%. This positions the pioneering … Read more Bitcoin mining, once a niche market, has witnessed unprecedented growth in 2023, especially with stocks like Cipher Mining (CIFR) showcasing a spectacular near-400% rise. Despite a recent 10% dip in Bitcoin’s value, largely attributed to speculations about SpaceX’s possible sale of its crypto holdings, its annual increment stands firmly at 50%. This positions the pioneering cryptocurrency…

    Article 2023年8月20日

  • Attorney John Deaton stands firm on Ripple’s chances in SEC appeal

    TL;DR Breakdown Attorney and XRP supporter John Deaton is confident in the SEC’s appeal against Ripple, citing Judge Torres’s well-reasoned order as a strong foundation. Judge Torres categorized Ripple’s XRP sales into three groups and found substantial distinctions, impacting investors’ expectations. U.S. District Judge Jed Rakoff’s disagreement with Judge Torres’s approach in another case adds uncertainty to the pending appeal by the SEC. Description The famous attorney and avid XRP supporter, John Deaton, expresses confidence in the Securities and Exchange Commission (SEC) appeal against Ripple (XRP). He believes that Judge Analisa Torres’s well-reasoned order provides a solid foundation for a negative conclusion for the SEC. Citing a detailed thread that explains the judge’s decision, Deaton highlights the use of … Read more The famous attorney and avid XRP supporter, John Deaton, expresses confidence in the Securities and Exchange Commission (SEC) appeal against Ripple (XRP). He believes that Judge Analisa Torres’s well-reasoned order provides a solid foundation for a negative conclusion for the SEC. Citing a detailed thread that explains the judge’s decision, Deaton highlights the use of the Howey test…

    Article 2023年8月7日

  • Twitter suspends memecoin-linked AI bot after Elon Musk’s ‘scam crypto’ allegations

    TL;DR Breakdown Twitter has suspended the account of the popular memecoin-linked AI-powered bot after Elon Musk claimed it was a fraudulent crypto account. The bot was linked to the ERC-20 memecoin BOB, which was launched in April 2023. It is important to point out that Elon Musk has before tweeted shill BOB. Description Controversies and scandals are often brewing in the lightning-fast world of crypto. Elon Musk, the influential CEO of Tesla and SpaceX, is behind the newest upheaval, which involves Twitter suspending a memecoin-linked AI bot.  The incident demonstrates how influential and powerful social media can be in the Bitcoin industry, where even a single tweet can … Read more Controversies and scandals are often brewing in the lightning-fast world of crypto. Elon Musk, the influential CEO of Tesla and SpaceX, is behind the newest upheaval, which involves Twitter suspending a memecoin-linked AI bot.  The incident demonstrates how influential and powerful social media can be in the Bitcoin industry, where even a single tweet can cause widespread disruption. Dive into the depths of this exciting story with me. Twitter…

    Article 2023年6月22日

  • Joe Biden’s economic policy overhaul – What to know

    TL;DR Breakdown Biden’s economic policy aims to revitalize American manufacturing, focusing on industrial hubs like Buffalo, New York. This policy marks a departure from laissez-faire economics and promotes more government intervention in the economy. Bills like the Inflation Reduction Act and Infrastructure Investment and Jobs Act provide subsidies, grants, and loans to stimulate investment in several sectors. Description The dormant industrial scene of Buffalo, New York is undergoing a drastic renaissance as the once pulsating center of American manufacturing is beginning to show signs of life again. This remarkable change is the result of President Joe Biden’s economic policy overhaul, signaling a momentous shift in American economic thinking. Reigniting the flame of industry … Read more The dormant industrial scene of Buffalo, New York is undergoing a drastic renaissance as the once pulsating center of American manufacturing is beginning to show signs of life again. This remarkable change is the result of President Joe Biden’s economic policy overhaul, signaling a momentous shift in American economic thinking. Reigniting the flame of industry A colossal industrial campus, originally built in 1923 for…

    Article 2023年7月13日

  • I asked AI to predict when Ether will hit its all-time high again, and I am shocked

    TL;DR Breakdown GPT-4, an advanced AI model, has made a bold prediction about Ethereum hitting a new all-time high by January 15, 2024. This prediction is based on ETH’s current bullish outlook, optimistic market sentiment, and developments such as the adoption of its Proof of Stake mechanism. The forecast has stirred excitement and anticipation in the crypto community, marking a significant potential milestone for the cryptocurrency. I recently engaged in an enlightening dialogue with an AI model, GPT-4, renowned for its analytical prowess. This encounter led to a startling prediction concerning Ethereum, the second-largest cryptocurrency by market capitalization. Decoding GPT-4’s Ethereum prediction Artificial Intelligence continues to disrupt various sectors, with the finance and cryptocurrency landscape being no exception. Renowned for its deep learning capabilities, GPT-4 has emerged as an insightful commentator in the digital currency ecosystem. Recently, I interacted with this cutting-edge model to discuss Ethereum’s outlook, given its current market status. At the time of our exchange, the largest altcoin was trading at $1,873, within a narrow price range. Engaging in an insightful dialogue, GPT-4 articulated a thought-provoking analysis…

    Article 2023年6月6日
TOP