TUSD regains $1 parity after three-day depeg News โธ Stablecoins
TUSD regains $1 parity after three-day depeg
TUSD's market cap experienced a net decline of nearly $30 million since it lost its peg on June 10.
2 min read
Updated: Jun. 13, 2023 at 1:14 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
TrueUSD (TUSD) has regained parity with the U.S. dollar.
The stablecoin lost true parity with the US Dollar on June 10 amid mounting community concerns over its minting and redemption activities.
On June 10, TUSD depegged from the $1 mark after its team paused minting activities via Prime Trust, a Nevada-based crypto custodial firm. Following the news, the stablecoin dropped to as low as $0.9957 on June 11. At press time it had just reclaimed $1.
There wereย speculationsย at the time that Prime Trust might have been insolventย as its parent company, Prime Core Technologies, had entered into a non-binding term sheet with BitGo to acquire 100% of its equity on June 8.
While TUSD maintained that its minting and redemption services remain unaffected, as its partnerships with other banking institutions remain intact, several users on its official Telegram handle have raised issues about their redemptions request as of June 13.
In response, a representative of TUSD said:
“Prime Trust will continue to process lower-volume redemptions. if you are looking for a reliable and cost-effective to redeem and wire these currencies, Flowbank may be a good choice.”
Earlier today, the TUSD team tweeted that it was “diligently working towards resuming TUSD minting on Prime Trust.”
As of press time, TUSD has yet to respond to CryptoSlate’s request for additional commentary on its minting and redemption issues.
TUSD’s market cap declines by $30M
Amid these issues, TUSD’s market cap declined by nearly $40 million since June 10 but reclaimed $10 million upon meeting parity again today. Its market cap currently stands at $2.03 billion.
As of June 9, TUSD had a market cap of $2.07 billion but dropped as low as $2.02 billion early June 13.
TUSD’s Curve pool further corroborates the data as it is heavily imbalanced as of press time, with crypto traders showing preferences for Tether’s USDT, Circle’s USD Coin (USDC), and DAI.
The TUSD dashboard shows that the embattled stablecoin account for nearly 72% of the pool’s $13.28 million reserve, while USDT made up roughly 9%. The other stablecoins in the pool make up the 20% balance.
Despite these issues, Kaiko data stated that the BTC-TUSD pair on Binance has overtaken BTC-USDT as the most traded BTC market in crypto and currently accounts for 61% of all BTC volume on the exchange.
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Posted In: Featured, Stablecoins
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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TrueUSD, a USD-backed stablecoin you can exchange and trust.
Tether
$1.00021
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
USD Coin
$0.99999
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Dai
$1.00014
Dai (DAI) is a cryptocurrency token and operates on the Ethereum platform.
Bitcoin
$97,284.36
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.