According to CoinGecko data, the stablecoin TrueUSD (TUSD) began to detach slightly from its peg starting at 8 pm on Monday (15th) Taiwan time. As of the time of this article’s publication, the price of TUSD is $0.9866, representing a decrease of approximately 1.3% (calculated based on $1).
Source: CoinGecko
As reported by Cointelegraph, during the detachment of TUSD, there was a significant amount of selling 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 buy orders were only valued at $296.8 million, resulting in a net outflow of $42.3 million.
Source: Binance
Additionally, CoinGecko data also shows that the market capitalization of TUSD dropped significantly from around $2.02 billion to $1.91 billion between 00:40 and 00:45 early this morning, suggesting a large redemption of TUSD may have occurred.
Source: CoinGecko
The detachment of TUSD may be related to the latest Launchpool on Binance. This Launchpool project (Manta) did not offer a TUSD mining pool as in previous rounds. Furthermore, there was no MANTA/TUSD trading pair expected to be launched on the first day of MANTA token listing, which could have led to the selling of TUSD and subsequent detachment. On the other hand, the stablecoin FDUSD experienced a slight premium on Binance as TUSD began to detach.
In the past two months, there have been concerns in the market regarding TUSD. The foreign media Protos reported on January 10th that TrueUSD encountered difficulties in providing real-time reserve proof, as its API system experienced errors and could not provide the dollar value of its collateral assets.
Additionally, an anonymous user, Rho Rider, pointed out potential arbitrage opportunities with TUSD on December 16th. The user shared images showing TUSD’s price on the Poloniex exchange hitting the $0.92 price level several times in the span of a few weeks, with a detachment of nearly 8%, while TUSD’s price on Binance remained stable at around $0.99. Rho questioned, “Why can’t anyone execute a nearly 10% arbitrage?”