TrueUSD (TUSD), a popular stablecoin, has moved away from its peg to the US Dollar. This is a surprising turn of events for the industry.
In the past, stablecoins like TUSD have been a key part of cryptocurrency trade. Specifically, because they are stable by nature and are tied to traditional assets. However, this assumption has been thrown off by TUSD’s recent drop to $0.9951. This event has caused chaos on the crypto market.
After the sudden drop in value, TrueUSD made an announcement. It noted that TUSD minting through Prime Trust, a crypto custody specialist regulated by the state of Nevada, has been “paused for further notification.”
The statement reads as follows: “TUSD minting and redemption services remain unaffected and will continue to operate as usual. We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions.”
TUSD minting and redemption services remain unaffected and will continue to operate as usual. We want to assure you that our partnerships with other banking institutions remain intact, allowing for seamless transactions.
— TrueUSD (@tusdio) June 10, 2023
Given how important stablecoins are to the whole crypto ecosystem, this unexpected move has made people wonder about their security and stability.
