The stablecoin TrueUSD (TUSD) has yet again surrounded itself with controversy resulting in a depeg on the Binance.US exchange.
Ironically, stablecoins often make headlines for not being stable. Now TUSD is yet again in trouble, trading around 10% below its $1 peg in the Binance.US exchange.
TUSD Depegs on Binance.US
The screenshot below from Binance.US shows that TUSD’s USDT pair is trading at $0.9007, around 10% down from its $1 peg. Whereas in Binance, the token is trading at $0.9984.
A Twitter user, “Parrot Capital,” with over 16,000 followers, believes that the depeg usually starts from Binance.US and spreads elsewhere. He wrote:
“The peg usually breaks hardest there first and spreads elsewhere second.”
Other users have criticized Parrot Capital for using Binance.US as a metric. A user wrote:
“Binance US has been debunked, there is no liquidity left. You can’t use it as a metric.”
There have been liquidity crises on Binance.US, pushing the price of Bitcoin to over $138,000 on June 21. Its market share has fallen below 0.7%
Click here to read a detailed comparison of Binance and Binance.US
FTX Auditor Rebrands
Parrot Capital also highlighted other factors that might impact the price of TUSD. The stablecoin released its independent accountant’s report audited by “The Network Firm.”
But, the community discovered that FTX’s auditor, Armanino, rebranded itself to “The Network Firm” after the collapse. As TUSD used the same auditor, it is receiving backlash from the community.
The incidents of stablecoin’s depeg have been becoming quite frequent recently. On 15 June, BeInCrypto reported that the largest stablecoin, USDT depegged due to heavy selling pressure. However, it swiftly recovered its peg.
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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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