TrueUSD stablecoin loses its peg to the U.S. dollar

TrueUSD's depeg is fueling rumors about stablecoin's reserves, whose publisher is rumored to be Justin Sun.

TrueUSD has lost its peg to the U.S. dollar. At the time of writing, the stablecoin traded at $0.985. The cryptocurrency should actually remain stable at $1.

The "depeg" appears to be related to a massive sell-off on Binance. This is evident from data of the crypto exchange.

Purchase orders totaling about $303.6 million were offset by just under $451.9 million in sales orders. This results in an outflow of about $148.4 million from Binance.

The sell-off appears to be a reaction to recently uncovered inconsistencies regarding TrueUSD hedging. On Jan. 10, there were initial reports of problems demonstrating reserves held.

Questions about TrueUSD's reserves circulated as early as June 2023. At the time, The Network Firm was responsible for controlling the deposits. The firm also reportedly took control of FTX.US, then under the name Armanino.

In general, there are numerous rumors surrounding TrueUSD. The stablecoin's secret publisher is said to be Justin Sun. Both TrueUSD and Sun himself deny this. However, a lawsuit filed against the Tron founder by the blockchain company Archblock in mid-July 2023 brought the allegations back into the spotlight.