Summary
The TrueUSD (TUSD) stablecoin has depegged and fallen to a low of $0.995 after reports linking its founder, Justin Sun, to terrorist funding and security concerns. The depegging occurred after the former CEO of Binance, Changpeng Zhao, resigned. Traders began selling their TUSD holdings, causing a significant selloff and raising questions about the stability of the stablecoin’s peg. The biggest individual selloff order was $3 million.
Introduction
The TrueUSD (TUSD) stablecoin, founded by Justin Sun, has experienced a depegging and fallen to $0.995 following reports of his association with terrorist funding and security concerns. This depegging occurred in the aftermath of the resignation of Changpeng Zhao, the former CEO of Binance. Traders quickly sold off their TUSD holdings, causing significant market turbulence.
Main Points
After Justin Sun’s response on Twitter, clarifying that Tron is decentralized and committed to fighting terrorist funding, significant liquidations of TUSD were observed due to its association with Sun. Security concerns were also raised as a token called TEURO was deployed from the same address as TUSD, implying a possible hack of the private keys linked to TUSD. Additionally, the launch of the TCNY bogus token, associated with the same fraudulent funds as TEURO, further raised doubts about the stability and security of TUSD. Despite attempts to repeg, TUSD is currently trading at $0.996.
Conclusion
The depegging of TrueUSD (TUSD) and its subsequent fall to $0.995 can be attributed to reports linking its founder, Justin Sun, to terrorist funding and security concerns. The resignation of Binance’s former CEO, Changpeng Zhao, sparked a selloff of TUSD holdings, causing market turbulence. Moreover, the deployment of a fraudulent token and the possible hacking of TUSD’s private keys further raised doubts about the stablecoin’s stability and security. The current trading price of TUSD stands at $0.996.