Binance's FDUSD Focus Drives TUSD Off $1 Peg: A Crypto Analysis

• TrueUSD (TUSD) Stablecoin Witnesses a Dip, Trading Below its Target $1 Peg
• TUSD's Declining Market Cap and Link to Justin Sun
• Binance's Role in TUSD's Decline
• An Increase in FDUSD Volume Coinciding with TUSD's De-Pegging
• Persistent Doubts Surrounding TUSD's Attestations and Techteryx's Response
• Observations on Binance Launchpool Activities

TrueUSD (TUSD) Stablecoin Witnesses a Dip, Trading Below its Target $1 Peg

As the Asian business day progresses, the TrueUSD (TUSD) stablecoin is trading below its target peg of $1, with the current rate at $0.988, according to Indices data. TUSD sell orders on the Binance crypto exchange have notably outpaced buy orders in the past day, amounting to over $444 million against $301 million in buys. This has led to a deficit of $142 million.

TUSD's Declining Market Cap and Link to Justin Sun

Bradley Park, a CryptoQuant analyst, shared insights into the underperformance of TUSD in a recent conversation on Telegram. He highlighted two potential reasons - Justin Sun's association with TUSD and recent security breaches at HTX and Poloniex. Park also noted that TUSD's market cap has been on a steady decline.

Binance's Role in TUSD's Decline

Park also suggested that Binance's decision to eliminate fees for First Digital's FDUSD trading pairs with Ether (ETH), BNB$312 -5.65% Chain's BNB, Dogecoin$0.091 -0.42% (DOGE), and Solana$104 5.03%'s SOL could have contributed to TUSD's recent dip. The reason being - Binance did not include TUSD as a staking option for launching new tokens on its Launchpad.

An Increase in FDUSD Volume Coinciding with TUSD's De-Pegging

Park observed that the surge in FDUSD volume, which coincided with TUSD de-pegging, may indicate a shift to FDUSD for participating in the FDUSD launch pool and Binance Manta Launchpad. He suggested that TUSD holders might have sold off due to the absence of a Launchpad pool, resulting in the de-pegging.

Persistent Doubts Surrounding TUSD's Attestations and Techteryx's Response

There are ongoing concerns regarding the attestations of TUSD. However, a representative from Techteryx, the company responsible for TUSD, has dismissed these concerns as baseless. The spokesperson stated that attestations continue as usual in the business course and denied any disruption. The spokesperson also clarified that Justin Sun is not a shareholder in Techteryx.

Observations on Binance Launchpool Activities

The spokesperson further noted the recent community mining activities related to Binance Launchpool$0.251 2.08%. They explained that these activities have led to short-term arbitrage opportunities. According to the spokesperson, these are part of standard market dynamics and liquidity adjustments.

Edited by Jonathan Stoker