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TrueUSD’s depegging on January 15 caught the attention of the crypto community, prompting concerns and speculation. However, the TrueUSD (TUSD) team has clarified the reasons behind its recent depegging from the US dollar, attributing it to activities on Binance Launchpool.
The TrueUSD team took to social media, specifically X (formerly Twitter), to address the situation and shed light on the factors contributing to the stablecoin’s temporary deviation from its peg.
Short-term arbitrage opportunities
According to the TUSD team the depeging is a result of the recent community mining activities associated with Binance Launchpool. These activities created short-term arbitrage opportunities, a phenomenon deemed normal within market dynamics and liquidity adjustments.
Although the stablecoin has almost recovered its US-dollar peg, it made a scare earlier today after sliding further down below $0.975 leaving traders scared of another stablecoin collapse.
While data from Binance revealed significant trading volumes of TrueUSD, with users selling approximately $238.3 million worth within 24 hours, the TrueUSD team emphasized that these market movements were part of the expected ebb and flow of the cryptocurrency landscape.
TrueUSD reassures users
Contrary to some concerns raised earlier this month regarding the suspension of TrueUSD’s real-time attestations of reserves, the TUSD team clarified that regular attestations are ongoing as part of their standard operations. Any claims suggesting otherwise were deemed incorrect, addressing uncertainties around the stability and transparency of the stablecoin’s underlying reserves.
Furthermore, TrueUSD assured its user base that redemption channels, involving various global banks, are functioning smoothly as always. This assurance is vital to maintaining user confidence in the stability of TrueUSD’s platform, especially during times of market volatility.
In a show of dedication to their collaboration with Binance, the TrueUSD team expressed their commitment to broadening the partnership. Additionally, they highlighted the continued accessibility of TUSD minting and redemption services, with users directed to the official website for seamless transactions.
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