TrueUSD (TUSD) Depegging on Binance Launchpool: What You Need to Know

TrueUSD (TUSD) has explained that the recent detachment of its value from the US dollar is linked to actions on Binance Launchpool.

TUSD claims recent depegging is linked to Binance Launchpool activities.

Introduction

📢 Big news in the crypto world! TrueUSD (TUSD), one of the top stablecoins in the market, recently experienced a depegging incident that caught the attention of many investors. In this article, we’ll dive into what caused the depegging, the impact it had on TUSD’s value, and the reasons behind it.

The Depegging Explained

🤔 So, what happened exactly? TrueUSD’s value temporarily fell below its USD peg on January 15, causing concern among crypto enthusiasts. Fortunately, the TrueUSD team quickly clarified that the depegging was associated with activities on Binance Launchpool, an initiative that allows users to stake their coins and earn rewards.

🔍 Upon closer inspection, it became clear that users were selling large amounts of TrueUSD through the TUSD-USDT trading pair on Binance, totaling approximately $238.3 million. However, it’s essential to note that around $83.8 million worth of TrueUSD was also purchased during the same period.

Binance Launchpool and Investor Behavior

💡 Now, you might be wondering why Binance Launchpool had such a significant impact on TrueUSD’s value. Well, the popularity of Binance’s launch pool program, especially the introduction of projects like MANTA and the staking requirements of BNB or FDUSD, could have influenced investors’ behavior.

• 🚀💰 Bitcoin ETFs: The Good, the Bad, and the Hilarious 😄📈
• Chainlink’s LINK Token Surges to $16, Becomes 11th Largest Cryptocurrency
• SEC Approves First-Ever Spot Bitcoin ETFs: Unlocking New Opportunities in the Financial Market 🚀

🙌 Justin d’Anethan, head of APAC business development at Keyrock, a well-known crypto market maker, explained that investors may have shifted their focus away from stablecoins like TUSD to participate in Binance’s lucrative launch pool program.

🔒 Additionally, TrueUSD might have suffered from the recent $100 million security breach on Poloniex, a popular cryptocurrency exchange associated with TRON founder Justin Sun. These external events can have ripple effects in the market, impacting the confidence investors have in stablecoins.

History of TrueUSD’s Depegging

📉 This current incident is not the first time TrueUSD has faced a depegging issue. In October last year, the stablecoin also experienced a loss of its dollar peg following the suspension of minting activities through its technology partner, Prime Trust.

🤔 With a market cap of over $1.8 billion, TrueUSD is the fifth-largest stablecoin in the market, trailing behind popular cryptocurrencies such as USDT, USDC, BUSD, and DAI. However, it’s important to note that the stablecoin market, including TrueUSD, faced significant challenges after the collapse of algorithmic stablecoin TerraUST in 2022.

What Lies Ahead for TUSD?

🔮 As we move forward, it’s essential to analyze the future outlook for TrueUSD and the stablecoin market as a whole. While stablecoins have struggled to recover fully from the 2022 meltdown, Tether (USDT) has managed to regain the market value it lost during that period.

💰 Tether’s market capitalization has approached a staggering $100 billion, with its market share growing from 50% at the beginning of 2023 to over 70% as of the end of the year. This growth indicates the ongoing demand for stablecoins, even in the face of market volatility and occasional depegging incidents.

Q&A: Additional Topics of Interest

Q: How does TrueUSD ensure the stability of its value in the long term?

A: TrueUSD guarantees the stability of its value by having daily attestations for its underlying reserves, ensuring transparency and trust for users.

Q: What measures did TrueUSD take to address the recent depegging incident?

A: Following the depegging incident, TrueUSD clarified that the issue was due to internal errors and announced a full upgrade of its fiat reserve audit system in partnership with MooreHK, a reputable accounting firm.

Q: Are stablecoins like TrueUSD a safer investment option compared to other cryptocurrencies?

A: Stablecoins provide a more stable value compared to other cryptocurrencies but come with their own risks. Investors should carefully consider their investment goals and conduct extensive research before making any decisions.

Conclusion

💡 TrueUSD’s recent depegging incident has shed light on the impact of external factors and investor behavior on stablecoin value. While setbacks can occur, stablecoins remain a popular choice for investors seeking stability in the volatile world of cryptocurrencies.

📢 Don’t forget to share this article with your fellow crypto enthusiasts and join the conversation on social media. Together, let’s unravel the mysteries of the crypto world! 🌐🚀

---

Reference List:

1. TrueUSD Depegs as Holders Dump $330M TUSD
2. TUSD Loses 1% Peg Amid Binance’s FDUSD Focus: Analyst
3. Bitcoin ETF’s Big Deal: Gold Provides a $100 Billion Answer
4. LookOnChain’s Tweet on TrueUSD’s Depegging
5. TrueUSD’s Official Twitter Announcement

---

Author’s Note: I hope you enjoyed this article. If you have any questions or would like to share your thoughts, feel free to leave a comment below! 📝✨

We will continue to update Blocking; if you have any questions or suggestions, please contact us!