The TrueUSD (TUSD) stablecoin depegs and plummeted to a low of $0.995 due to a number of reasons, such as significant sell orders following Changpeng “CZ” Zhao’s resignation as CEO of Binance and a report by Reuters claiming that terrorists favor Justin Sun’s Tron over Bitcoin in order to finance their activities. Following a repeg attempt, the price of TUSD is currently trading at $0.996.
TUSD Declines Amid Fears in the Market
The TrueUSD (TUSD) stablecoin began to depreciate at the beginning of the week as investors sold their holdings in response to growing anxieties following Changpeng “CZ” Zhao’s resignation as CEO of Binance, the biggest cryptocurrency exchange globally. On November 27 and 28, the depeg got worse, with the price of the TUSD dropping as low as $0.995.
Researcher at Kaiko Riyad Carey stated that the selloff in large market orders made the TUSD stablecoin peg appear unstable. In one order, $3 million was sold off as much TUSD as ever.
Furthermore, a Reuters article claiming that terrorists were using Tron instead of Bitcoin to finance terrorism also contributed to the depreciation of the US dollar. The National Bureau for Counter Terror Financing unit in Israel froze 143 Tron wallets between July 2021 and October 2023, according to the report.
In response, Justin Sun used X to make it clear that Tron is decentralized, just like Bitcoin and Ethereum. The Tron team is dedicated to stopping the funding of terrorism, he continued.
“As has always been the case, our top priorities remain maintaining decentralization, guaranteeing the safety of everyone’s assets, and providing instant, affordable, and reliable transactions in order to combat terrorist financing through the integration of various analysis projects and partners.”
The price of Tron (TRX) dropped by over 8% to $0.100, and it is currently trading at $0.101, down 1% over the last day.
Given that Justin Sun, the founder of Tron, and CZ, the former CEO of Binance, support TUSD, the news resulted in significant TUSD liquidations. Despite multiple attempts, the stablecoin has not been able to rebound and is currently trading at $0.996.