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TrueUSD ($TUSD) experienced a significant depeg event, sparking backlash across exchanges and social media.
TrueUSD Falls Below $1 Peg, Sparks Concerns
In the past 24 hours, TrueUSD ($TUSD) experienced a considerable de-pegging from its $1 price level, presently trading around $0.9902, after rising from its initial low of $0.9878 according to Coinstats data.
This rare event for a major stablecoin sparked heated reactions across exchanges and social media.
The price divergence first appeared just after midnight on Jan 15, as $TUSD dipped below $1 amidst frenzied selling on Binance.
$TUSD ultimately dropped as far as $0.984 at one point, representing a significant deviation from its intended stability.
Analysts pointed to the number of outflows on Binance as evidence.
See Also: TrueUSD Stablecoin ($TUSD) Depegged To $0.985 Amid Selloff
TrueUSD No Longer True
According to available data, Binance saw over $369.2 million worth of $TUSD selling activity in the last 24 hours compared to only $239.1 million in buy orders.
The resulting net outflow of $130 million indicates traders rapidly converting significant $TUSD holdings into other cryptos such as Bitcoin or rival stablecoin Tether.
Stablecoin commentators expressed concerns about the state of $TUSD’s reserve collateralization, pointing to reports that $TUSD’s attestation system has struggled to provide updated USD valuations in recent days.
The team behind $TUSD has not yet issued a public statement.
The realtime attests of $TUSD stopped working since yesterday, which potentialy means that it was reported as undercollatelised. (see status description in the pic)@tusdio @The_NetworkFirm any comments? pic.twitter.com/s4vsa7Gz4o
— Symbio (@NoCryptFish) January 10, 2024