Binance’s Massive TrueUSD (TUSD) Minting Triggers 100% Surge in TrueFi’s TRU Token Following BUSD Controversy
In the latest development in the world of cryptocurrency, Binance, a major digital currency exchange, has minted 49.99 million TrueUSD (TUSD) stablecoins on February 16, following a BUSD incident. This move has pushed up the price of the TRU token of TrueFi, the issuer of TUSD, by more than 100% in the last 24 hours.
The news of Binance minting a large quantity of TUSD was first discovered by Whale Alert, a cryptocurrency tracker. The exchange minted 49,990,000 TUSD, equivalent to about $50 million, overnight on February 16. The current total market cap of TUSD is $973 million, with a trading volume of $79 million over the past 24 hours, according to Coingecko.
TrueUSD is a U.S. dollar stablecoin pegged to the USD at a 1:1 ratio. It was launched to a limited investor base in January 2018, and has since grown to incorporate almost $400 million of backed tokens as of October 2020. TrueUSD is one of several cryptocurrency stablecoins managed by TrustToken, a platform for tokenizing real-world assets. Like other stablecoins, TrueUSD aims to facilitate increased liquidity and provide cryptocurrency traders and users with a non-volatile asset relative to free-floating tokens such as Bitcoin.
Following the minting of TUSD by Binance, the price of TRU token of TrueFi, the issuer of TUSD, surged unexpectedly. Currently, TRU is trading at around $0.091, up 111% in the last 24 hours, according to TradingView.
It is unclear why Binance minted a large amount of TUSD, but this action took place after the BUSD incident with regulatory authorities in the US. Prior to that, Paxos, the issuer of BUSD, was ordered by the New York State Department of Financial Services to stop issuing the stablecoin. In this context, CZ, the CEO of Binance, said the exchange will continue to support BUSD in the near future.
“We anticipate that users will switch to other stablecoins over time. Binance will adjust the products accordingly, such as discontinuing the use of BUSD as the main trading pair,” CZ shared on his personal Twitter.
Furthermore, following the FUD (fear, uncertainty, and doubt) about BUSD, the Binance CEO also said that the exchange has plans to support other types of stablecoins that are not pegged to the USD. This move is expected to provide users with more options and reduce the risk of dependence on any single stablecoin.
Read more:
- Binance USD (BUSD) Peg Shatters As Value Falls Below $1 After SEC Accuses Paxos Of Unregistered Securities
- New York Regulators Crack Down On Crypto: Binance’s BUSD Token Creation Halted
- Paxos, Issuer Of USDP And Binance USD (BUSD) Stablecoins, Under Investigation By NYDFS
- Paxos To Halt Relationship With Binance, Encourages Customers To Convert BUSD Tokens To Pax Dollar (USDP)
- Paxos Burns Over $700 Million Worth Of BUSD Tokens As Regulatory Pressure Mounts