TrueUSD Drops Below $1 Amidst Concerns About Stability
The stablecoin TrueUSD (TUSD) has experienced a significant drop in value, falling to around $0.98, amidst massive sales on Binance. TUSD is currently trading at $0.985, 1.5% below its desired $1 par value.
Massive TUSD Sales on Binance
This devaluation comes amidst increased selling of TUSD on Binance, where traders have sold over $339.2 million of TUSD in the past 24 hours, compared to only $296.8 million of purchases. This has resulted in a net outflow of $42.3 million worth of TUSD.
Concerns About TUSD Collateralization
Recent reports have revealed that TrueUSD is struggling to provide real-time attestations of its reserves, suggesting that the stablecoin may be undercollateralized. Issues with the system’s API and the inability to provide a value in US dollars for its collateral assets have exacerbated concerns.
User X, known as Rho Rider, raised concerns about TUSD as early as December, pointing to a potential arbitrage opportunity for TUSD. However, TUSD was trading nearly 8% below its par value on Poloniex, while its price remained stable around $0.99 on Binance, raising questions about why no one was taking advantage of this arbitrage opportunity.
Messages in the Poloniex Telegram group indicate that users still cannot withdraw TUSD from the exchange.
