TrueUSD (TUSD), the stablecoin associated with Tron founder Justin Sun, has faced challenges maintaining its dollar peg and recently took measures to address this issue.
On January 15, TUSD experienced a significant drop in value, falling to $0.984 at 11:15 pm UTC.
This depreciation coincided with traders selling more than $339 million worth of TUSD on the Binance exchange within a 24-hour period, resulting in a net outflow of $42.3 million from the exchange.
Some users on X (formerly known as Twitter) speculated that TUSD’s loss of peg might be linked to its exclusion from Binance’s Manta launch pool initiative.
Additionally, reports emerged on January 10, suggesting that TUSD struggled to provide real-time attestations of its reserves, causing concerns among investors and the crypto community.
In response to the depeg event, the TrueUSD team took action by upgrading its fiat reserve audit system.
They enlisted the services of Moore Hong Kong, an accounting firm, to provide daily attestations of the stablecoin’s fiat reserves.
Moore Hong Kong’s involvement supplements the existing services offered by The Network Firm. Under this new system,
TrueUSD committed to providing comprehensive reports, including details about the reserve funds held by their financial partners.
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Michelle Chu, an executive at Moore Hong Kong, stated that they would work in collaboration with The Network Firm to enable TUSD users to monitor the stability of the coin’s reserves.
Despite these efforts to enhance the transparency and trustworthiness of its reserve system, TUSD’s price continued to decline.
As of the latest available data, on January 18, TUSD’s price dropped as low as $0.97, according to CoinMarketCap, a platform that tracks cryptocurrency prices.
However, at the time of this publication, TUSD’s price has slightly recovered, hovering around $0.99 on both CoinMarketCap and the Binance exchange.
In conclusion, TrueUSD has faced challenges in maintaining its peg to the US dollar, which has triggered actions to improve its fiat reserve audit system.
These efforts, including daily attestations by Moore Hong Kong, aim to restore confidence in the stablecoin’s value and stability within the crypto market.
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