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TrueUSD (TUSD) Stablecoin Depegs, Here’s Why – Crypto News

Published

3 years ago

November 28, 2023

Dripp

TrueUSD (TUSD) stablecoin depegs and dropped to a low of $0.995 amid various factors including large sell orders after Changpeng “CZ” Zhao stepped down as Binance’s CEO and after Reuters reported that terrorists prefer Justin Sun’s Tron to Bitcoin for facilitating terror financing. Currently, TUSD price trades at $0.996 after trying to repeg.

TUSD Depegs Amid Market Concerns

TrueUSD (TUSD) stablecoin started to depeg starting the week as traders liquidated their holdings amid rising concerns after the exit of Changpeng “CZ” Zhao as CEO of the world’s largest crypto exchange Binance. The depeg worsened on November 27 and 28, with the TUSD price falling to as low as $0.995.

Riyad Carey, a researcher at Kaiko, reported that TUSD stablecoin peg looked shaky due to some big market orders selloff. The largest TUSD selloff was $3 million in a single order.

Moreover, a Reuters report alleging Justin Sun’s Tron used by terrorists for terrorism financing than Bitcoin also caused TUSD depeg. The report pointed out seizures carried out by Israel’s National Bureau for Counter Terror Financing unit, which froze 143 Tron wallets between July 2021 and October 2023.

Justin Sun took to X in response to clarify that Tron is decentralized like Bitcoin and Ethereum. He added that Tron team is committed to combating terrorist financing.

“While we are committed to combating terrorist financing by integrating various analysis projects and partners, our top priority remains maintaining decentralization, ensuring the safety of everyone’s assets, and providing instant, affordable, and reliable transactions, as has always been the case.”

Tron (TRX) price fell more than 8% to $0.100, with the price currently trading at $0.101, down 1% in the past 24 hours.

As TUSD is supported by former Binance CEO CZ and Tron founder Justin Sun, the news caused massive liquidations of TUSD. The stablecoin has failed to repeg despite various attempts, trading currently at $0.996.

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