TUSD Stablecoin Loses Dollar Peg

On January 15, the “stablecoin” TrueUSD (TUSD) lost its parity with the US dollar, dropping by 1.3% to $0.984.

The loss of the peg occurred amid a significant volume of TUSD sales on the Binance crypto exchange.

At the time of publication, traders had sold stablecoins worth over $451 million in the past 24 hours. Considering purchase orders amounting to $300 million, the net outflow of TUSD was $151 million.

According to CoinGecko, the asset’s capitalization is $1.9 billion with a daily trading volume of $585 million.

On January 10, reports emerged that TUSD was experiencing difficulties in confirming its reserves in real-time, raising community concerns about insufficient backing.

The realtime attests of TUSD stopped working since yesterday, which potentialy means that it was reported as undercollatelised. (see status description in the pic)@tusdio @The_NetworkFirm any comments? pic.twitter.com/s4vsa7Gz4o

— Symbio (@NoCryptFish) January 10, 2024

According to a report by Protos, the stablecoin’s security mechanism detected several errors in the API and was unable to calculate the dollar value of its collateral assets.

Meanwhile, TUSD traded for several weeks with an almost 8% deviation from its target value on Poloniex, while its price on Binance remained stable.

According to X user Rho Rider, the “obvious explanation” is that users still cannot withdraw or deposit TUSD on Poloniex.

⚠️ $TUSD continues its march down off the Peg on Poloniex, while market cap dives

It’s doing ~$3M/day volume on there (prob wash traded). Meanwhile the price on Binance remains fairly steady.

The big ❓ is why isn’t anyone taking the nearly 10% arb?#JustinSunIsSetting https://t.co/qCUEZebLuk pic.twitter.com/oTo3JTPvnH

— Rho Rider (@RhoRider) December 16, 2023

Back in October 11, 2023, the real estate-backed tokenized stablecoin Real USD (USDR) lost its peg, dropping in price by 50%. Prior to the depeg, the coin’s capitalization was around $45 million.

Later, Moody’s recorded 609 depegs of major stablecoins over the past year. In total, there were 1914 “depegs” from January to September.