Binance Mints Massive Amount of TUSD Stablecoin – TRU Price Soars
TRU has skyrocketed nearly 200% following Binance’s minting of $50 million in TrueUSD (TUSD) and its announcement to “limit the use of BUSD as the primary trading pair.”
Binance Mints Large Amount of TUSD Stablecoin – TRU Price Soars
According to data from Etherscan, Binance, the world’s largest cryptocurrency exchange, minted 49.99 million TrueUSD (TUSD) stablecoins on the evening of February 16 (Vietnam time). This move comes shortly after Paxos was instructed to halt the issuance of BUSD and faced regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC).
50M #TUSD minted at #Binance and the price of $TRU increased by 200%.
— Lookonchain (@lookonchain) February 16, 2023
On-chain data shows that #Alameda and #justinsun are the two largest minters of $TUSD.#Alameda minted a total of 1.64B $TUSD in history.#justinsun minted a total of 889M $TUSD in history. pic.twitter.com/N1tUjFQm5U
Lookonchain reports that Alameda and Justin Sun are the two largest issuers of TUSD. Historically, Alameda has minted a total of 1.64 billion TUSD, while Justin Sun has minted 889 million TUSD.
Originally owned by the Trust Token platform, TUSD was later acquired by Techteryx, an Asian conglomerate. TrustToken also spun off from TrueFi and was rebranded as Archblock last year.
Interestingly, TUSD was one of the stablecoins that Binance consolidated into BUSD in September 2022. At that time, Binance stated that the consolidation aimed to “improve liquidity and capital efficiency for users,” though this rationale appeared unconvincing to some.
The market capitalization of TUSD stands at $973 million, placing it at #53 among major cryptocurrencies. The trading volume of this stablecoin has also surged to nearly $55 million over the past 24 hours.
TUSD Data
Source: CoinMarketCap
Binance’s additional minting of TUSD seems to have bolstered TrueFi, causing its token TRU to surge nearly 200% overnight and currently trading around $0.087. The trading volume for TRU in the same timeframe also saw an impressive increase of 9800%.
1-hour Chart of TRU/USDT on Binance at 08:45 AM, February 17, 2023
This move may also be viewed as part of Binance’s strategy to “move away” from BUSD, as mentioned by CEO Changpeng Zhao in a recent AMA. Zhao indicated that the exchange plans to seek and partner with additional stablecoin issuers in the future. He stated:
“We anticipate that users will gradually shift to other stablecoins over time. We will make product adjustments accordingly. For example, avoiding the use of BUSD as the primary trading pair… Additionally, we are exploring other companies and USD-pegged stablecoins.”
