Binance‘s BUSD targeted by US authorities earlier this year has paved the way for the introduction of alternative stablecoins. As one of the largest stablecoins, BUSD’s market value has been dwindling as token minting has come to a halt and redemptions continue. In this scenario, TUSD is claiming a piece of the pie. However, some problems persist, and recent allegations could be a game changer.
Did TUSD Lie?
The Network Firm confirmed in an investigation on June 23 that the statement made about Prime Trust was false. As we announced late yesterday, the trustee decision showed that Prime Trust has reached the end of the road. The company cannot access its old assets and has been found to be using customer assets to cover its losses. It even lacks the approximately $80 million in reserves it owes to its customers.
Bad rumors about Prime Trust had been circulating for a while. Investors, knowing that TUSD also used their services, demanded a response from the stablecoin issuer. TUSD stated that they no longer have any financial connection with the bankrupt company. However, The Network Firm’s investigation on June 23 revealed $26,434 in reserves. TUSD was actually storing this amount with the firm while stating zero exposure.
Allegations about TUSD
TUSD, with a market value of $3.1 billion, is the fifth largest dollar-pegged stablecoin. The crypto giant Binance’s support for the stablecoin, with a promise of zero commission, gained significant interest. The BTCTUSD pair reached substantial volumes. While the intellectual property of the token was bought by a relatively unknown Asian investor, Techteryx, Archblock acts as an intermediary to manage the stablecoin.
Following CryptoQuant CEO’s “BTC is rising with TUSD purchases” statement, rumors about the newly popular stablecoin did not stop. Various social media accounts are making extreme claims, from token redemptions to unsecured printing. For now, these rumors are not finding much traction in the crypto Twitter space, as we can see from the BTC price. However, more negativity about TUSD in the coming days could put pressure on the market.
In the meantime, CryptoQuant CEO Ki deleted his post focusing on the relationship between TUSD and the BTC rally. Prior to this, CZ had explained to him that the growing TUSD interest was due to the zero fee campaign.
