TrueUSD Depegs on Binance.US, Drops to 80 Cents Against Tether
TUSD trades at a discount versus Tether as former FTX auditor Armanino's rebranded outlet The Network Firm's association with TrueUSD raises alarm bells on Crypto Twitter.
The dollar-pegged stablecoin TrueUSD (TUSD) is trading at a discount relative to its compatriot tether (USDT) on , the U.S. subsidiary of Binance.
At press time, the TU SD/USDT pair traded at 89 cents on , having hit a low of 80 cents on Wednesday, data from charting platform TradingView show. On Binance, the pair traded at around $0.9980.
Volatility in stablecoins, which have evolved as funding currencies over the past three years, often feeds into the broader market. So far, TUSD's volatility has not impacted the broader market, with bitcoin (BTC) continuing to trade in familiar ranges above $30,000.
TUSD, with a market cap of $3 billion, poses less of a systemic risk to the broader market than tether, whose market cap is $83 billion.
According to pseudonymous market observer Parrot Capital, TUSD is getting hammered amid low volumes.
TUSD's downside volatility on comes hours after the token's reserve report showed the project held $26,000 in assets backing the stablecoin at a U.S. depository institution that was ordered to halt withdrawals.
The attestation for the reserve report by The Network Firm, a rebranded outlet of former FTX auditor Armanino. That has raised alarm bells on Crypto Twitter about the lack of system of checks and balances in the crypto industry.
"Wait, the auditor who has been attesting to the audits (in Prime Trust) was the old FTX auditor who set up under a new name after the FTX scandal?!?!? These guys literally audited the biggest grift in history and just renamed themselves?!?," Cinneamhain Ventures's Managing Partner Adam Cochran .
, TrueUSD's Chainlink price oracle comprises 17 different notes, but all pull the data from the same source, The Network Firm.
Traders on TUSD early this month amid rumors that the stablecoin project uses embattled crypto service provider Prime Trust to mint and redeem tokens. Later TrueUSD clarified that it has no exposure to Prime Trust.
Edited by Parikshit Mishra.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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