The crypto community witnessed another stablecoin depegging event today, as TUSD (TrueUSD) traded below its 1:1 parity with the US dollar. The stablecoin, which is backed by Justin Sun’s Tron network, faced criticism from some prominent figures in the industry, while Binance decided not to include it in its latest staking pools.
According to Chainlink data, TUSD was trading at around $0.98535493 at press time, indicating a loss of its pegged value. This sparked reactions from the crypto community, especially from a trader and X user with the handle TheSkyhopper, who posted a sarcastic comment on the risks of stablecoins:
Crypto just isn’t right without an annual stablecoin depegging event or three.
TheSkyhopper also pointed out that Binance did not support TUSD staking on its new launchpad, implying that the exchange had doubts about the stablecoin’s reliability.
The crypto community had varied reactions to Binance’s decision. Some commended the exchange for its cautious and selective approach, while others accused it of displaying bias and unfairness.
One of the vocal critics was Adam Cochran, who tweeted:
Big props to Binance for not supporting TUSD in its latest pools. One should never consider Justin Sun’s scammy asset, for which he holds mint keys, as a first-class stable asset.
TUSD Trading Volume Remains High Despite Controversy
Despite the depegging and the controversy, TUSD still saw a high trading volume on Binance, the largest crypto exchange by market cap. According to Binance’s trading page, the TUSD-USDT pair reported a selling volume of about $377.2 million in TUSD in the last 24 hours, while the buy orders for TUSD totaled around $373 million.
This suggests that there is still a strong demand for TUSD, which is one of the oldest and most widely available stablecoins in the market. CoinGecko data reports that TUSD is listed on 61 exchanges and holds a market cap of $1.9 billion. However, the stablecoin also experienced a -22% drop in market cap in the last 30 days, indicating a loss of confidence among some investors.
Cryptocurrencies, such as stablecoins, aim to preserve a steady value relative to a reference asset, such as the US dollar or gold. People frequently utilize them as a safeguard against the fluctuation seen in other cryptocurrencies, in addition to their role as a medium of exchange and a store of value. However, stablecoins also face various challenges, such as regulatory uncertainty, technical issues, and market manipulation.
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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.
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