TrueUSD Struggles to Maintain $1 Peg, Points to Binance Launchpool Activities

By: Isha Das

The stablecoin TrueUSD (TUSD) has revealed that its recent departure from the $1 peg was due to community mining activities related to Binance Launchpool, leading to short-term arbitrage opportunities. Throughout the past day, the value of TUSD has fluctuated, falling as low as $0.9708 before recovering to $0.9904.

In an attempt to correct this fluctuation, the team at TUSD have posted a statement explaining that this volatility is a normal aspect of market dynamics and liquidity adjustments. They assured users that the stablecoin redemption channels remain operational at their designated website, addressing concerns about its stability.

Further, TrueUSD has clarified that routine attestations are ongoing as part of standard operations and have pledged continous collaboration with Binance. They rebutted speculation suggesting that the deviation is tied to Binance's exclusion of TUSD from its launchpool. Previously, TUSD was allowed for participation in these activities, but its removal led to significant TUSD selling activity in the market.

Reports have suggested that large holders of TUSD have dumped their assets on Binance, migrating to other stablecoins. Nonetheless, the project remains resilient, with significant buying activities taking place to return TUSD to its peg. Despite facing a drop in supply by over 40% in the last two months, TrueUSD remains hopeful of a return to its $1 peg.