Last year, amidst a lot of FUD and criticism, the stablecoin that fell out of favor has hit a new low today. The price of dollar-indexed stablecoins should be 1 dollar, but TUSD has fallen to $0.9841. Now, it is trying to alleviate investors’ concerns by taking steps regarding reserve validations.
Why Is TUSD Falling?
In the rises of 2023, figures like the CEO of CryptoQuant and CAPO claimed that markets were speculatively pushed up using TUSD. CZ, who mentioned that this was related to the zero-fee policy, could not convince the skeptics at that time. Then, the launchpad lock conditions were removed, and Binance found a different stablecoin to support itself. This increased the redemptions of TUSD while significantly pulling down its market value.
Especially in January, when TUSD was pegged below 1 dollar, today’s drop has scared investors. A few minutes ago, they announced that they have reached an agreement with an audit firm named Moore Hong Kong (MooreHK) regarding reserve validation reports.
“We are excited to announce that TUSD’s fiat reserve audit system has been completely upgraded. From today onwards, leading accounting firm Moore Hong Kong (MooreHK) officially started providing daily validation services to TUSD. In addition to continuing the collaboration with The Network Firm by integrating their technical solutions, the upgraded validation report includes additional details about the reserve funds under the supervision of financial and trustee partners.
Founded in 1975, MooreHK is one of the member firms of Moore Global, one of the world’s leading accounting and consulting networks with roots in the UK dating back 100 years. Collaborating with MooreHK is another step forward in advancing TUSD’s globalization initiative announced in July 2023, enhancing the focus on creating accessibility in significant capital markets.”
