Depeg Causes Crypto Market Turmoil for Stablecoin TrueUSD

Depeg Causes Crypto Market Turmoil for Stablecoin TrueUSD

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.”

Given how important stablecoins are to the whole crypto ecosystem, this unexpected move has made people wonder about their security and stability.


About Dren Hima

Being exposed to the crypto industry for the last few years has given me valuable experience with market analyses (technical and fundamental) as well as blockchain technology in general. As the content editor and a market analyst of Walletor, I strive to share the latest developments of the crypto industry, while also providing a unique educational experience for all Crypto & FinTech enthusiasts.

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