TrueUSD affiliated with Tron founder faced a loss of its dollar peg on January 15, dropping to $0.984 due to significant sales on Binance.
To regain its dollar peg, the stablecoin TrueUSD (TUSD), which is affiliated with Tron founder Justin Sun, has implemented daily attestation services provided by an accounting company.
In the early morning hours of January 15, the TUSD stablecoin began to lose its dollar peg, and by 11:15 p.m. UTC, it had dropped to $0.984. Dealers on the Binance platform sold over $339 million worth of TUSD in just one day, leading to the depeg.
It was as a result of this that the exchange experienced a total net outflow of $42.3 million. Users on X (formerly known as Twitter) speculate that the depeg may be connected to TUSD not being featured as an asset on the Manta (MANTA) launch pool initiative undertaken by Binance.
Additionally, on January 10, allegations that TUSD was having difficulty posting real-time attestations of its reserves circulated on social media. These claims stated that TUSD was having difficulty.
The TrueUSD team announced that it had enhanced its fiat reserve audit mechanism after the depeg event that took place. To provide daily attestations of the stablecoin’s fiat reserves, the company utilized the services of Moore Hong Kong, an accounting firm in addition to its present provider, The Network Firm.
TrueUSD has stated that the report will incorporate information regarding the reserve funds kept by its various financial partners through the implementation of the new system.
An executive from MooreHK named Michelle Chu stated that the company will be working with The Network Firm to make it possible for users of TUSD to monitor its reserves.
The price of the stablecoin continued to fall even though the company was taking steps to implement a new mechanism for testing its fiat holdings.
The price of TUSD dropped to a low of $0.97 on January 18, according to CoinMarketCap, which is a cryptocurrency information tracker online.
