Despite TrueUSD’s best attempts to reassure customers of its cash reserves, the price of the cryptocurrency dropped to $0.97 on January 18th.
In an effort to regain its dollar peg, the stablecoin TrueUSD (TUSD), which is linked to Tron creator Justin Sun, has begun using the attestation services of an accounting company on a regular basis.
At 11:15 p.m. UTC on January 15, the TUSD stablecoin had fallen to $0.984, marking the beginning of its decoupling from the dollar. In the span of one day, traders on the Binance exchange sold more than $339 million worth of TUSD, leading to the depeg. The result was a net loss of $42.3 million for the trade.
Some X (formerly Twitter) users have also hypothesized that Binance’s decision to exclude the stablecoin from their Manta (MANTA) launch pool project is to blame for the depeg. On January 10th, rumors spread on social media claiming that TUSD was having trouble posting real-time confirmations of its reserves.
In the aftermath of the depeg, the TrueUSD team revealed an improved mechanism for auditing fiat reserves. For daily attestations of the stablecoin’s fiat reserves, the business not only used its present supplier, The Network Firm, but also Moore Hong Kong, an accounting firm.
The new approach will allow TrueUSD to disclose its financial partners’ reserve cash in the report, according to the company. MooreHK’s Michelle Chu said that the company would be working with The Network Firm to provide TUSD holders the ability to track the firm’s reserve levels.
A new mechanism for certifying its fiat reserves was deployed, yet the price of the stablecoin still kept falling. The price of TUSD dropped as low as $0.97 on January 18th, according to CoinMarketCap, a cryptocurrency information tracker.
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