TrueUSD (TUSD) Depegs, Rises To 70% On Curve Pool After Prime Trust Disaster
While TrueUSD (TUSD) denies its exposure to crypto custodian Prime Trust, it has depegged for the second time this month. Prime Trust was placed into receivership on Tuesday after rival BitGo called off its bid to acquire Prime Trust.
TUSD stablecoin fell to 0.9974 against Tether (USDT) on Binance and 0.80 on Binance.US amid exposure to Prime Trust. Maverick Protocol (MAV) launchpool on Binance starting to withdraw TUSD. Moreover, reserves on Curve pool has imbalanced further, rising more than 70%. The TUSD deposit and loan interest rates in Aave V2 soared, with the deposit interest rate reaching 42% and loan interest rate reaching 54%.
As a result, whales and investors are taking arbitrage opportunities to swap TUSD for USDC and other stablecoins. TUSD has $20 million in plunge protection buys down to $0.997, but $21 million would take it down to $0.70 on Binance.
Notable crypto experts including Adam Cochran, The Wolf Of All Streets, and Parrot Capital took to Twitter to warn about TUSD depeg risks. Moreover, TUSD reserves attestation was provided by The Network Firm (formerly Armanino), the same audit firm that was in charge of FTX.US audits. Adam Cochran said:
“Wait, the auditor who has been attesting to the TUSD 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?!?”
Also Read: Shibarium Testnet Reaches 25 Million Transactions, SHIB & BONE To Rally?
Binance Exposure to TUSD and Prime Trust
Binance started supporting TUSD stablecoin after the US regulator ordered Paxos to stop minting Binance USD (BUSD) stablecoin.
TUSD reserves are majority held in Prime Trust, First Digital, Capital Union, Manual, and BitGo. According to TUSD real-time reserve balance, the token supply stands at 3.139 billion TUSD and USD-denominated collateral held in accounts is $3.14 billion.
CoinGape Media earlier reported Prime Trust started holding Binance customers’ cash via partner banks in March. The custodian was linked to FTX and its executives.
Also Read: Bloomberg Analysts Increasingly Bullish On BTC Price Amid BlackRock, Fidelity Bitcoin ETF
- Robert Kiyosaki Calls Bitcoin and Ethereum ‘Real Money,’ Urges Investors to Ditch ‘Fake’ Fiat
- ‘Sell Gold, Buy Bitcoin’: Expert Flags Major Market Bottom Signal
- Ripple Makes ‘Unusual’ $500M Transfer Amid $1 Billion XRP Treasury Plans
- ‘I’m Going Bonkers’: Dave Portnoy Says He’ll Buy XRP Again If It Dips Below This Level
- BitMine’s Tom Lee Calls Dip Golden Opportunity as Trump Sets Meeting With China on U.S. Tariffs
- Solana Price Faces Bearish Pressure — Analyst Notes 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?
- HYPE Price Teeters Amid Weak Technicals and Soaring Liquidations
- XRP Price Prediction As Ripple Announces $1B Treasury Plans – Is a Rebound Imminent?
- Bitcoin Price Prediction Amid Gold’s Parabolic Rally to Second-Largest Reserve Asset
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
