TrueUSD Stablecoin Depegs As Whales Dump TUSD Amid Regulatory Woes

In a surprising turn of events, TrueUSD (TUSD), the stablecoin issued by TrustToken, has experienced a significant de-pegging, making it the first stablecoin of 2024 to face such a challenge. The sharp decline in TUSD value for the second time in recent months, fueled by whale actions and market dynamics, has intensified discussions about stablecoin vulnerabilities, especially as regulatory scrutiny looms over the crypto space.
TrueUSD Faces Depegging As Whale Dumps Millions In TUSD
TrueUSD faced a dramatic de-pegging, falling by 1.4%, triggered by substantial outflows orchestrated by whale addresses. Meanwhile, according to the Binance report, TrueUSD witnessed a total of around $150 million outflows in total on the exchange.
Over the last 24 hours, the TUSD noted a total inflow of $301.54 million, of which $237.30 million comes from large orders, $33.08 million from medium orders, and $31.15 million from small orders. On the other hand, the outflows totaled $147.77 million, of which large orders marked around $372.04 million outflows, $40.26 million from medium orders, and $37 million from small orders.
Several market pundits have attributed the whale-induced sell-offs and market dynamics to the TUSD’s latest de-pegging, causing a drop from $1 to around $0.98. The sudden outflows from whale addresses have shifted TUSD’s market position, dropping below First Digital USD (FDUSD) and standing at the 5th position in the top stablecoins ranking.
Notably, the market cap of FDUSD stood at $2.02 billion during writing, while TUSD had a market cap of around $1.89 billion. The incident also highlights the vulnerability of stablecoins during periods of heightened volatility.
Also Read: LUNC Price Jumps 5% & USTC 12% After Core Security Upgrade Package Announcement
Regulatory Winds Intensify As Stablecoins Face Scrutiny
The de-pegging of TrueUSD coincides with growing expectations of stablecoin regulations in the United States. Industry leaders anticipate regulatory developments in 2024, following the approval of Spot Bitcoin ETFs.
For context, Circle CEO Jeremy Allaire emphasizes the administration’s commitment to assert US leadership in regulating stablecoins, anticipating a shift towards consumer protection. On the other hand, Circle’s optimism aligns with the Clarity for Payment Stablecoins Act, pending approval in the House of Representatives, aiming to subject stablecoins to traditional financial regulations.
However, despite TUSD’s de-pegging, industry insiders remain hopeful that regulatory frameworks will bring stability and consumer protections to the burgeoning stablecoin landscape. This dual narrative of market turbulence and regulatory anticipation underscores the challenges and evolution within the stablecoin ecosystem, leaving investors and industry players closely watching developments in 2024.
Meanwhile, in another development in the stablecoin segment, that has gained notable attention from global investors, a recent UN report showed that Tether, a prominent cryptocurrency platform, faces accusations of its stablecoin USDT, to a rise in illegal activities, notably in Southeast Asia. Notably, the report highlights instances of money laundering and the exploitation tactic called “pig butchering,” involving emotional and financial manipulation.
However, Tether responds boldly, refuting the UN’s claims, emphasizing its commitment to combat criminal use of USDT. The platform challenges the characterization of its stablecoin as a criminal tool, sparking a debate on the role of stablecoins in illicit activities and the need for regulatory scrutiny in the cryptocurrency space.
Meanwhile, as of writing, the TUSD price was down 1.46% over the last 24 hours to $0.987, with its trading volume jumping 146% to $619.07 million.
Also Read: XAI Price Jumps 25% Shooting Past $1.0, What’s Behind The Rally?
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- ‘Trump Insider Whale’ Increases Bitcoin Short As U.S. Counters China in New Australia Deal
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- Ethereum’s Vitalik Buterin Responds to Allegations of Excessive Control By ETH Inner Circle
- Solana News: Gemini Launches SOL Edition Credit Card Following XRP Card Success
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?
- Ethereum (ETH) Price Prediction: Analyst Eyes $7,000 by Q4 as Bitmine Accumulates $281M ETH — Will History Repeat Itself?