Every day, a new event occupies the agenda in the cryptocurrency markets, and the latest development looks troubling. The collapse of UST in 2022 had caused significant losses for cryptocurrency investors. Now, the possibility of a similar event happening again is causing concern among investors.
Why TUSD Is Below One Dollar
TUSD, which was heavily supported by Binance in its early days, has been the subject of controversy for a long time. CAPO and many experts who anticipated declines said that the recent increases were triggered by Binance using TUSD. We remember that many names, including the CEO of CryptoQuant, joined these discussions.
Today, TUSD has once again retreated to the $0.9949 region, similar to its value on December 25th. The situation where stablecoins, which are supposed to stay pegged to the dollar, fall below $1 is referred to as a “depeg.” TUSD has been lingering below $1 for a long time but continues to hover at a reasonable level. As the fourth-largest stablecoin, it could be beneficial for investors to be prepared for a potential sudden wave of FUD and to diversify their risk among other major stablecoins. The issue of depegging is being discussed again on social media, which means there is a risk of FUD growing.
