Stablecoin TUSD Faces Sell-offs and Large Redemptions, Showing Slight Deviation

Stablecoin TUSD Faces Sell-offs and Large Redemptions, Showing Slight Deviation

Stablecoin TUSD Faces Sell-offs and Large Redemptions, Showing Slight Deviation

According to data from CoinGecko, the stablecoin TrueUSD (TUSD) showed a slight divergence starting from 8 PM Taiwan time on Monday (15th). As of the time of this article’s publication, the TUSD price is $0.9866, with a decrease of approximately 1.3% (calculated based on $1).

Source:
CoinGecko

According to a report by Cointelegraph, during the divergence of TUSD, there was a significant sell-off of the stablecoin on the cryptocurrency exchange Binance. In the past 24 hours, traders have sold over $339.2 million worth of TUSD on the Binance platform, while the buy orders were only valued at $296.8 million, resulting in a net outflow of $42.3 million.

Source: Binance

Furthermore, CoinGecko data also shows that the market capitalization of TUSD dropped significantly between 00:40 and 00:45 AM today, from approximately $2.02 billion to $1.91 billion, suggesting a large redemption of TUSD.

Source: CoinGecko

The divergence of TUSD may be related to the latest phase of Launchpool by Binance. In this Launchpool phase (project: Manta), TUSD mining pools were not provided as in previous phases. Additionally, there was no MANTA/TUSD trading pair scheduled to be available on the first day of MANTA token listing. These factors might have led to the sell-off of TUSD and subsequent divergence. On the other hand, while TUSD started to diverge, the stablecoin FDUSD showed a slight premium on Binance.

In the past two months, several reports in the market have raised concerns about TUSD. The foreign media Protos reported on January 10th that TrueUSD faced difficulties when releasing real-time reserve attestations. Their API system encountered some errors, preventing it from providing the dollar value of its collateral assets.

Furthermore, an anonymous user named Rho Rider pointed out potential arbitrage opportunities with TUSD on December 16th. The shared images showed that TUSD’s price on the Poloniex exchange touched the $0.92 mark multiple times in a few weeks, with a divergence of nearly 8%. Meanwhile, TUSD’s price on Binance remained stable around $0.99. Rho questioned, “Why hasn’t anyone executed a nearly 10% arbitrage?”

Note: The translation is provided based on the given information and may not reflect the opinions or views of the translator.