TrueUSD (TUSD), a prominent stablecoin, is currently grappling with maintaining its peg to the US dollar.
TUSD is trading at $0.988, straying from its intended $1 peg, according to the latest data from CoinMarketCap. This deviation highlights a notable imbalance in market dynamics.
Recent trading activity on the crypto exchange Binance further underscores the pressure on TUSD. In the last 24 hours, TUSD has witnessed sell orders amounting to over $444 million, starkly outweighing buy orders, which stand at $301 million. This significant disparity has led to a flow deficit of $142 million, signaling a bearish sentiment among investors and traders in the TUSD market.
Bradley Park, an analyst at CryptoQuant, shed light on the factors behind TUSD's current predicament in a Telegram interview with CoinDesk.
Park linked TUSD's challenges to its association with Justin Sun and noted a consistent decline in its market cap. This decline is partly attributed to the recent security breaches at HTX and Poloniex, which have shaken investor confidence.
Furthermore, Park pointed out that Binance's decision to eliminate fees on trading pairs involving First Digital's FDUSD with various cryptocurrencies has indirectly impacted TUSD.
Notably, Binance excluded TUSD from the staking options for new tokens on its Launchpad, favoring FDUSD instead. This exclusion seems to have triggered a shift in investor preference towards FDUSD, especially for participating in the FDUSD launch pool and joining the Binance Manta launchpad.
The increase in FDUSD's trading volume coincides with TUSD's de-pegging, suggesting a migration of investments from TUSD to FDUSD. Park believes that the lack of a Launchpad pool for TUSD prompted holders to sell, leading to its current de-pegging situation.
In response to ongoing concerns about TUSD's financial attestations, a spokesperson for Techteryx, the firm behind TUSD, reassured the market. They stated that the attestations are proceeding as usual and dismissed any rumors suggesting otherwise as false. Additionally, they clarified that Justin Sun is not a shareholder in Techteryx, addressing one of the key concerns raised by market analysts.
