TrueUSD Deploys Daily Attestations Amid Struggles to Recover Dollar Peg
Summary:
TrueUSD (TUSD), a stablecoin affiliated with Tron founder Justin Sun, is struggling to regain its dollar peg, prompting implementation of daily attestations services by an accounting firm. In response to the depegging, TrueUSD brought in Moore Hong Kong to conduct daily attestations of the stablecoin's reserves, in addition to their current provider, The Network Firm. Despite these efforts, the stablecoin's value has seen a continued decline, hovering around $0.99 on CoinMarketCap and Binance at the time of reporting.
TrueUSD (TUSD), a stablecoin linked to Tron founder Justin Sun, has enlisted the services of an accounting firm for daily attestations as it attempts to regain its dollar peg. Starting from Jan. 15, TUSD began deviating from its dollar peg, slipping to $0.984 at 11:15 pm UTC. The depegging occurred as traders offloaded more than $339 million worth of TUSD on the Binance exchange within a day, resulting in a net outflow of $42.3 million from the exchange. Speculation is rife on X (formerly Twitter) that the depegging could be due to TUSD's non-inclusion in Binance's Manta (MANTA) launch pool initiative. Coupled with this, on Jan. 10, discussions emerged on social media indicating that TUSD was having difficulties providing real-time attestations of its reserves.
In response to the depegging, the TrueUSD management revealed that they have improved their fiat reserve auditing system. They have contracted Moore Hong Kong, an accounting firm, to perform daily attestations of the stablecoin's fiat reserves, alongside their current provider, The Network Firm. TrueUSD stated that the revamped system would include details about the reserve funds held by its financial associates. MooreHK's principal, Michelle Chu, announced their collaboration with The Network Firm to enable TUSD users to keep tabs on its reserves. However, despite these changes, the stablecoin's value persisted in its downward trajectory. As of Jan. 18, TUSD plummeted as low as $0.97, as per CoinMarketCap's data. As of writing this article, TUSD price floats around $0.99 on both CoinMarketCap and Binance.
Published At
1/18/2024 4:24:54 PM
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