GLOBAL MARKETS - TrueUSD (TUSD), a stablecoin associated with crypto entrepreneur Justin Sun, has experienced a significant setback as its value slipped below the $1 peg. The stablecoin's fall to $0.984 sparked a substantial sell-off on the cryptocurrency exchange Binance. The market reaction saw traders withdraw over $130M from TUSD and a total of $369.2M being liquidated, indicating a precipitous drop in trader confidence.
The depegging event, which occurred on Monday, has raised concerns among investors and traders within the cryptocurrency community, as stablecoins are typically designed to maintain parity with a stable asset such as the US dollar. This incident involving TrueUSD is part of a broader conversation about the stability and reliability of stablecoins, which play a crucial role in the digital asset markets by providing a supposed safe haven during periods of market turbulence.
The recent attestation issues have escalated concerns about TUSD's reserve collateralization due to the absence of a public statement from the TUSD team. As of today, TUSD's current price stands at $0.9878 after Binance reported a significant net outflow of $130M from total sales of $369.2M against purchases worth $239.1M.
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