- This is the deepest level TUSD has fallen since launch.
- Binance has recorded an outflow of nearly $128 million in the past 24 hours.
In a shocking turn of events, the fifth largest stablecoin, True USD, hit the market [TUSD]fell below the ideal $1 peg as the ghosts of de-pegging returned to haunt the market once again.
TUSD goes below $1
According to AMBCrypto’s analysis of CoinMarketCap, TUSD started falling below the pin at 11:00 UTC on January 15 and fell to $0.984 by 23:15 UTC.
Notably, this is the deepest TUSD has fallen since its official launch almost six years ago.
Source: CoinMarketCap
TUSD is dumped in favor of USDT?
As news of the depegging poured in, market observers noticed an increase sell orders for TUSD on the top cryptocurrency exchange Binance [BNB].
To verify these claims, AMBCrypto turned to DeFiLlama. Indeed, TUSD outflows of nearly $128 million were recorded on the exchange in the past 24 hours.
Notably, USDT saw a significant capital increase around this time, leading participants to believe that TUSD was being exchanged in favor of the king of stablecoins.
Source: DeFiLlama
Concerns surrounding TUSD began to arise surface about difficulties in accessing real-time attestations of its reserves, possibly meaning the stablecoin was under-collateralized.
For the uninitiated, this is a risk because it indicates that there may not be enough collateral to meet repayments during a crisis.
Binance gives the cold shoulder?
The exclusion of TUSD from the latest version of Binance MANTA launch pad also raised eyebrows.
Notably, the launch pad rewards new tokens to investors who lock assets for a specific period of time. With no choice for TUSD, holders may have started exchanging it for Binance’s new favorite, FDUSD.
TUSD was supported by Binance in March following the fall of Binance USD due to regulatory scrutiny. Binance began aggressively marketing TUSD, aided by its successful zero-fee trading program.
However, it turned out that Binance DELETED the zero-fee promotion for the aforementioned pair in early September.
While a plausible reason for this move was not yet clear, rumors of exposure to bankrupt crypto custodian Prime Trust have been circulating for some time. TUSD’s market cap has since plummeted, while FDUSD has grown over the same period.
It became clear that Binance was turning its full attention to FDUSD.
Source: Glassnode