TrueFi (TRU) Price Goes on a Rollercoaster Ride After CZ Emphasizes Its Non-Relation to TUSD
In a recent development, Binance, one of the world’s largest cryptocurrency exchanges, has announced the suspension of its free trading program with BTC, except for the BTC/TUSD trading pair. This move has caused the price of TRU to increase by almost 30% within just one hour.
The CEO of Binance, CZ, tweeted that TRU should not be related to TUSD, but this quickly caused the price of TRU to plummet.
TRU should not be related to TUSD.
— CZ 🔶 Binance (@cz_binance) March 15, 2023
This decision by Binance is a significant one, as the exchange had previously offered free trading for BTC with 13 spot pairs to celebrate its fifth birthday. While this move boosted trading volumes on the platform, it also faced criticism. However, Binance has stated that Bitcoin trading will still be zero-fee on the platform, but only for the BTC/TUSD trading pair starting from March 22 at 00:00 UTC.
This move by Binance has further highlighted the exchange’s shift towards the stablecoin TUSD, following the severing of its relationship with BUSD due to legal issues with the US government. Previously, Binance had issued a large amount of TUSD stablecoin and introduced it into many trading pairs on the platform.
The price of TRU, a lending protocol of TrueFi, also rose significantly following this move, although in reality, the project is not closely related to TUSD. It is only a product that was previously under the TrueFi Protocol.
As can be seen in the chart below, the price of TRU has experienced a sharp increase within just one hour of the announcement by the exchange. At present, TRU is being traded at approximately $0.11, indicating a 165% surge in value over the last 30 days.
While Binance has maintained its zero-fee trading policy from then until now, the sudden announcement of the suspension of free trading with BTC, except for the BTC/TUSD pair, has surprised many in the crypto community. The decision has caused a significant impact on the price of TRU and has left many traders wondering what other changes might be in store for Binance in the future.
TrueFi is a decentralized finance (DeFi) lending protocol created by the TrustToken team. Unlike platforms such as Aave, Compound, and Venus that require borrowers to provide collateral, TrueFi offers uncollateralized loans with fixed interest rates. The project’s ultimate goal is to establish an automated, market-driven credit rating and lending system that can operate beyond the limitations of traditional protocols. Achieving this will involve overcoming obstacles such as rigid minimum/maximum APYs and a high TRU participation factor, as well as increasing user responsibility, particularly when it comes to approving new loan types and onboarding new borrowers not on the pre-approved whitelist.
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