In a surprising turn of events, the stability of TrueUSD (TUSD) experienced a significant dip, dropping to $0.995. This decline was triggered by several factors, including the resignation of Binance’s former CEO, Changpeng Zhao (CZ), and contentious statements suggesting that terrorists prefer Justin Sun’s Tron over Bitcoin for funding activities.
📉 The top 100 #TrueUSD wallets have dropped a collective 27.8% of their holdings in the past week, which is a dump of $181M. $TUSD has moved up to the 4th largest #stablecoin in October, after #BinanceUSD saw its market cap decrease significantly. https://t.co/qzjzYTrBQ1 pic.twitter.com/GAo0WokLy7
— Santiment (@santimentfeed) November 29, 2023
Given the association of TUSD with Justin Sun, the founder of Tron, traders responded by swiftly selling their TrueUSD holdings, resulting in the depegging of the stablecoin. Market intelligence firm Santiment reported on X that the top 100 #TrueUSD wallets collectively reduced their holdings by 27.8% in the past week, witnessing a substantial drop from $650 million to $468 million—a total dump of $181 million.Â
Despite this, TUSD has managed to climb to become the fourth-largest stablecoin, surpassing BinanceUSD, which saw a significant decrease in its market cap.
TRON is a decentralized protocol, similar to Bitcoin and Ethereum, with nodes operating worldwide. Global super representatives are responsible for running this protocol. While we are committed to combating terrorist financing by integrating various analysis projects and…
— H.E. Justin Sun ĺ™ĺ®‡ć™¨ (@justinsuntron) November 27, 2023
Addressing the concerns, Justin Sun Tron took to X, emphasizing that TRON operates as a decentralized protocol similar to Bitcoin and Ethereum. The protocol relies on nodes distributed globally, managed by global super representatives.Â
Sun highlighted the commitment to combatting terrorist financing through various analysis projects and partnerships. However, he emphasized that the paramount focus remains on maintaining decentralization, ensuring the safety of users’ assets, and providing swift, cost-effective, and reliable transactions.
In the aftermath of the controversies and market activity, TrueUSD has exhibited a slight recovery, reaching $0.9986. The developments surrounding TUSD underscore the intricate dynamics of stablecoins, where external events and perceptions can have a significant impact on their stability and market position.Â
As the cryptocurrency community navigates through these events, attention remains on how stablecoins adapt to challenges and regulatory scrutiny in the ever-evolving crypto landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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