TrueUSD (TUSD), a stablecoin tied to Tron founder Justin Sun, has taken a decisive step to recover its dollar peg by deploying a new reserve audit system. This move comes in response to TUSD losing its peg to the dollar, dropping as low as $0.97 on January 18.
The stablecoin, which started to lose its dollar peg on January 15, saw its price fall to $0.984. This depegging event was triggered by traders selling over $339 million in TUSD on the Binance exchange within 24 hours, resulting in a net outflow of $42.3 million from the exchange.
TrueUSD attributed the de-pegging to "community mining activities associated with Binance Launchpool," which created short-term arbitrage opportunities for traders. This explanation was offered in a post on January 18, where TrueUSD stressed that regular attestations were part of its standard operations, countering any claims to the contrary.
Speculations on social media suggested that the depeg might be linked to TUSD not being included in the Manta launch pool initiative by Binance. Rumors also circulated about TrueUSD's struggle to post real-time attestations of its reserves.
In response to these challenges, TrueUSD announced the enhancement of its fiat reserve audit system. The stablecoin has engaged Moore Hong Kong, an accounting firm, to provide daily attestations of its fiat reserves, complementing the work of its current provider, The Network Firm. This upgraded system is expected to offer more detailed reports on the reserve funds held by TrueUSD's financial partners.
Despite these efforts to restore trust and stabilize its value, TUSD's price continued to struggle, further emphasizing the importance of transparency and reliability in the stablecoin market. The ongoing situation with TrueUSD highlights the delicate balance stablecoin issuers must maintain to uphold their pegs and retain user confidence in an increasingly scrutinizing market environment.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
