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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