- The TrueUSD team has broken the silence on the recent depegging.
- The team linked the depeg to Binance Launchpool activities.
- The team reiterated that TUSD redemption services “are always accessible.”
The team behind TrustToken-issued stablecoin TrueUSD (TUSD) has issued a statement linking the recent depegging incident to “activities associated with Binance Launchpool.”
The stablecoin fell below its $1 peg to trade at $0.985 on January 16 amid an outsized trading volume of the pair TUSD-USDT on Binance. During the incident, the trading pair faced a shortfall of $369.3M in buy orders against $435M sales, leading to about $67M net outflow.
TrueUSD Team Addresses Depegging Incident
In a Twitter (X) post shared on January 18, the TUSD team noted that it had observed recent community mining activities linked to Binance Launchpool, which had led to “short-term arbitrage opportunities.”
“These are considered a normal aspect of market dynamics and liquidity adjustments. Furthermore, our TUSD redemption channels, involving various global banks, are functioning smoothly as always,” the team wrote.
Noting that it would continue to broaden collaboration with Binance further, the team reiterated that TUSD minting and redemption services “are always accessible” via the stablecoin’s official website.
At press time, TUSD had recovered from its early Thursday price of around 96 cents and is now trading at $0.99, according to CoinMarketCap data. Still, the price is not pegged.
As of January 18, TUSD’s market cap stood at $1,891,851,560, making it the fifth largest stablecoin behind USDT, USDC, BUSD, and DAI.
Read about Justin Sun’s recent immense TUSD minting spree:
Tron Founder Justin Sun’s $815M TUSD Mint Raises Eyebrows
Stay updated on TUSD’s fiat reserve attestation partner:
TrueUSD Taps MooreHK for Fiat Reserve Attestation Services