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TUSD continues to depeg to $0.968 after $238 million sell-off on Binance

TrueUSD (TUSD), a stablecoin pegged to the U.S. dollar, has fallen to a new all-time low of $0.9685 after being sold off by $238.3 million in the past 24 hours. On Jan. 18, TUSD dropped to $0.968, setting a new record of depegging from its intended value. TUSD has been showing signs of trouble since Jan. 16, when the stablecoin lost its $1 peg and traded around $0.98.

At the time of writing, TUSD has recovered slightly to $0.986, but still remains below its original $1 peg. The exact cause of the depegging incident has not been verified, but data from Binance, one of the largest cryptocurrency exchanges, shows that users have sold a large amount of TUSD worth $238.3 million in the past 24 hours, mainly through the TUSD/USDT pair, possibly due to panic over the future of the coin.

Chart by CoinMarketCap

Previously, on the first day of depegging, the coin was also reported to have lost $100 million in market capitalization. The market cap of the stablecoin has also decreased from $2.4 billion to $1.9 billion in the past month.

TrueUSD was launched in 2018 and is said to have a connection with “crypto tycoon” Justin Sun, the founder of TRON, a blockchain-based platform. In September 2022, TUSD became widely known when it was “handpicked” by Binance, which merged its balance as a substitute for BUSD, another stablecoin. As of July 2023, Binance was the key holder of up to 90% of the total supply of the stablecoin.

However, in the same period, Binance also launched a new stablecoin called FDUSD and gradually shifted its “favor” to FDUSD. Since then, the exchange has no longer listed the trading pairs of TUSD and showed its detachment from the coin.

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