TrueUSD (TUSD) Depegs, Rises To 70% On Curve Pool After Prime Trust Disaster – Crypto News – Crypto News
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TrueUSD (TUSD) Depegs, Rises To 70% On Curve Pool After Prime Trust Disaster TrueUSD (TUSD) Depegs, Rises To 70% On Curve Pool After Prime Trust Disaster

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TrueUSD (TUSD) Depegs, Rises To 70% On Curve Pool After Prime Trust Disaster – Crypto News

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While TrueUSD (TUSD) denies its exposure to crypto custodian Prime Trust, it has depegged for the second time this month. Prime Trust was placed into receivership on Tuesday after rival BitGo called off its bid to acquire Prime Trust.

The TUSD stablecoin fell to 0.9974 against Tether (USDT) on Binance and 0.80 on Binance.US amid exposure to Prime Trust. Maverick Protocol (MAV) launchpool on Binance starting to withdraw TSD. Moreover, reserves on Curve pool have unbalanced further, rising more than 70%. The TUSD deposit and loan interest rates in the Aave V2 soared, with the deposit interest rate reaching 42% and the loan interest rate reaching 54%.

Source: PeckShieldAlert

As a result, whales and investors are taking arbitrage opportunities to swap TUSD for USDC and other stablecoins. TUSD has $20 million in plunge protection buys down to $0.997, but $21 million would take it down to $0.70 on Binance.

Notable crypto experts including Adam Cochran, The Wolf Of All Streets, and Parrot Capital took to Twitter to warn about TUSD depeg risks. Furthermore, TUSD reserves attestation was provided by The Network Firm (formerly Armanino), the same audit firm that was in charge of FTX.US audits. Adam Cochran said:

“Wait, the auditor who has been attesting to the USD audits (in Prime Trust) was the old ftx auditor who set up under a new name after the ftx scandal?!?!? These guys literally audited the biggest grift in history and just renamed themselves?!?”

Also Read: Shibarium Testnet Reaches 25 Million Transactions, SHIB & BONE To Rally?

Binance Exposure to TUSD and Prime Trust

Binance started supporting TUSD stablecoin after the US regulator ordered Paxos to stop minting Binance USD (BUSD) stablecoin.

TUSD reserves are majority held in Prime Trust, First Digital, Capital Union, Manual, and BitGo. According to TUSD real-time reserve balance, the token supply stands at 3.139 billion TUSD and USD-denominated collateral held in accounts is $3.14 billion.

CoinGape Media previously reported Prime Trust started holding Binance customers’ cash via partner banks in March. The custodian was linked to ftx and its executives.

Also Read: Bloomberg Analysts Increasingly Bullish On BTC Price Amid BlackRock, Fidelity Bitcoin ETF

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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