Crypto Community Reacts as TrueUSD (TUSD) Faces Stability Issues

A trader and X user with the handle TheSkyhopper shared a dry remark on the risks of stablecoins with their followers today: “Crypto just isn’t right without an annual stablecoin depegging event or three.”

The trigger for this post was TUSD’s recent price movement, which seemed to indicate a depegging from its 1:1 parity with the US dollar. According to data sourced from Chainlink, TUSD was trading at approximately $0.98535493, signaling a deviation from its pegged value.

One of the noteworthy aspects of this situation was Binance’s decision not to include TUSD staking on its latest launchpad. This move drew both praise and criticism from the crypto community.

Criticisms were voiced by prominent figures like Adam Cochran, who tweeted,

Big props to Binance for not supporting TUSD in its latest pools. Justin Sun’s scammy asset that he has mint keys for should never be treated as a first-class stable asset.

Amidst the controversy, Binance’s TUSD-USDT trading pair reported a total selling volume of approximately $377.2 million in TUSD within the past 24 hours. Simultaneously, buy orders for TUSD amounted to roughly $373 million, according to data from the exchange’s trading page.

Stablecoins are designed to maintain stability amidst the inherent volatility of cryptocurrencies. According to CoinGecko data, TUSD has a market cap of $1.9 billion at press time. The stablecoin is available on 61 exchanges and has witnessed a -22% drop in market cap in the last 30 days.