TrueUSD (TUSD) depegged and fell to a low of $0.995 due to a large sell order after Changpeng Zhao resigned as Binance CEO and a Reuters report that terrorists prefer Justin Sun's Tron over Bitcoin to facilitate terror financing. Currently, TUSD price is trading at $0.996 after an attempted repeg.
TUSD decouples due to market concerns
The TrueUSD (TUSD) coin began to decouple from its peg this week as traders liquidated their holdings amid heightened concerns following the resignation of Changpeng “CZ” Zhao as CEO of Binance, the world’s largest cryptocurrency exchange. The decoupling worsened on November 27 and 28, with the TUSD price dropping to as low as $0.995.
Kaiko researcher Riyad Carey reported that the TUSD stablecoin peg looks unstable due to some large market order sell-offs. The largest single sell-off of TUSD was $300,000.
In addition, Reuters reported that Sun Yuchen's Tron was used by terrorists for terrorism financing more than Bitcoin, which also led to the decoupling of TUSD. The report pointed out that Israel's National Anti-Terrorism Financing Bureau seized 143 Tron wallets between July 2021 and October 2023.
Justin Sun responded on X to clarify that Tron is decentralized like Bitcoin and Ethereum. He added that the Tron team is committed to combating terrorist financing.
“While we are committed to combating terrorist financing by integrating various analytical projects and partners, our priority remains to maintain decentralization, ensure everyone’s assets are safe, and provide instant, affordable and reliable transactions, as it always has.”
Tron (TRX) price fell more than 8% to $0.100 and is currently trading at $0.101, down 1% in the past 24 hours.
As TUSD is backed by former Binance CEO CZ and Tron founder Justin Sun, the news led to a large number of TUSD liquidations. Despite multiple attempts, the stablecoin has failed to re-peg and is currently trading at $0.996.
