Summary
TrueUSD (TUSD), a stablecoin issued by Techteryx, is struggling to maintain its $1 peg as its market capitalization continues to decline. Speculation is swirling that Tron founder Justin Sun is using TUSD to cash out onto other cryptocurrencies. TUSD’s market cap has dropped 58% in the past three months, going from $3.8 billion to $1.6 billion. The de-pegging began last week amid a wider market sell-off and activities on Binance’s Launchpool. TUSD’s troubles with its peg to the US Dollar also occurred in June 2023 when crypto custodian Prime Trust collapsed. The alleged ties between Justin Sun and TUSD have raised concerns about transparency and the stability of the stablecoin. Justin Sun minted $800 million worth of TUSD on Tron and transferred the funds to accounts on HTX. The lack of transparency in HTX’s reserves is impacting TUSD’s reputation.
Key Points
1. TrueUSD (TUSD), a stablecoin issued by Techteryx, is struggling to maintain its $1 peg and has experienced a significant drop in market capitalization. Speculation suggests that Justin Sun may be using TUSD to cash out into other cryptocurrencies.
2. TUSD’s market capitalization has consistently decreased since November, losing $100 million every few days. Over the past three months, its market cap has dropped by 58% from $3.8 billion to $1.6 billion.
3. The recent de-peg of TUSD is attributed to various factors, including market sell-offs and activities on Binance’s Launchpool. Alleged ties between Justin Sun and TUSD have also raised concerns, with suspicions surrounding the lack of transparency in Huobi’s reserves and the timing of TUSD mints coinciding with large Bitcoin sell-offs.