TrueUSD (TUSD) once again saw all the wealth of more than 38 million coins concentrated on just 211 addresses. A week ago, the addresses holding tokens were nearly 450, but according to the Trust Token founders of this fixed-price coin, TUSD is quickly sent to exchanges. The increase in TUSD supply coincides with the minting of 550 million Tethers in the past two months, with the latest 250 million tranche happening just 10 days ago.
At the moment, Bittrex and Binance are the leading TUSD exchanges, with Upbit and Cryptopia the newly added markets. TUSD volumes have steadied to around $10 million in 24 hours.
With the latest growth in newly minted, and, presumably, bought TUSD, the supply of fixed-price tokens resembles the level of Tethers (USDT) in March 2017, before the explosive growth in supply. It is unknown if TUSD has the mechanism to achieve a similar feat. So far, the Etherscan page shows relatively small batches of tokens, which leave their original wallets to be sent for trading.
For now, the addition of TUSD has a slim effect on the price of Bitcoin. Not even the large share of Tether trading has helped boost the BTC market price, which is still weighed down, with a possibility of breaking below $7,000. The additional liquidity on those markets is relatively small, and the price pressures against BTC are too big right now.
https://twitter.com/PandaofBinance/status/1000782406612217856?s=19
Binance users have noticed a large amount of BTC being parked on the exchange wallet - but so far, no effect has been seen, and it is unknown what intentions the owner of the funds has.
With the falling prices of both BTC and altcoins, using a stable asset to park gains has increased. While Tethers cannot be easily sold for cash on the open market, and for TUSD selling back to cash is still largely untested, selling BTC for cash is available. However, holding funds in BTC in what is seen as a bear market is starting to look more risky. Hence the practice of locking in gains into stablecoins.
https://twitter.com/TrustToken/status/1000162328690622464
TUSD is increasing in popularity, but time will tell if the asset continues to exist without friction and to help the crypto ecosystem.
This article appeared first on Cryptovest
