TrueUSD Deviates from $1 Peg Amid Binance Sell-off

The stablecoin, TrueUSD (TUSD), has recently deviated from its $1 peg, causing concern among its holders. The event, which occurred around January 15, saw the price drop to a dismal $0.984. This development has led to an unexpected flutter of activity on the cryptocurrency exchange Binance, with over $339.2 million worth of TUSD sold in a span of 24 hours. The net effect – an outflow of $42.3 million.

Technical Glitches and Withdrawal Issues

Adding to the list of concerns, the stablecoin has been grappling with its ability to provide real-time attestations of its reserves. These issues have raised eyebrows and questions about its collateralization. On January 10, Protos reported that TrueUSD’s API had errors that affected the valuation of its collateral. This anomaly has led to speculation about potential undercollateralization.

Further, users on the exchange platform, Poloniex, have reported issues with withdrawing TUSD, thus affecting the potential for arbitrage trading. The discrepancy in TrueUSD’s value across different exchanges is glaring. Poloniex, for instance, reflects a nearly 8% lower value compared to Binance.

The Binance Factor

The lack of TUSD’s inclusion in Binance’s Manta launch pool initiative is speculated to be a significant factor in the recent sell-off. Binance’s decision may have triggered a wave of uncertainty among holders, leading to the massive sell-off.

As the cryptocurrency world watches with bated breath, responses from TrueUSD and Poloniex are eagerly awaited. The unfolding events surrounding TUSD highlight the volatility and unpredictability inherent in the cryptocurrency sphere, reminding us that even the ‘stable’ can wobble.