TrueUSD (TUSD) Depegs to $0.995 Amid Changpeng ‘CZ’ Zhao’s Binance Exit and Allegations of Terrorist Financing on Tron
Crypto News – The cryptocurrency market recently witnessed a significant event as TrueUSD (TUSD), a well-regarded stablecoin, experienced a depegging incident, with its value dropping to $0.995. This notable decrease in value came amidst a series of impactful developments in the crypto world, including the resignation of Changpeng “CZ” Zhao from his position as CEO of Binance, the world’s largest cryptocurrency exchange, and a startling revelation by Reuters regarding the use of Tron, a blockchain platform founded by Justin Sun, in terrorist financing.
The depegging of TUSD began earlier in the week as traders rapidly liquidated their holdings. The concerns escalated following CZ’s departure from Binance, leading to significant market volatility. The situation deteriorated further on November 27 and 28, with TUSD’s value plunging to its lowest point of $0.995.
Riyad Carey, a researcher at the crypto analytics firm Kaiko, highlighted that the TUSD’s peg stability was compromised due to substantial market sell-offs, including a single transaction that involved a sale of $3 million worth of TUSD.
Further exacerbating the situation was a report by Reuters, which alleged that Justin Sun’s Tron blockchain was more frequently utilized for terrorist financing compared to Bitcoin. This report was based on actions taken by Israel’s National Bureau for Counter Terror Financing, which had frozen 143 Tron wallets over a period spanning from July 2021 to October 2023.
In response to these allegations, Justin Sun defended Tron, emphasizing its decentralized nature akin to that of Bitcoin and Ethereum. He reassured the public of Tron’s commitment to fighting against terrorist financing by integrating various analysis projects and partners, all while maintaining the platform’s core principles of decentralization, asset safety, and providing efficient and affordable transactions.
Concurrently, Tron’s native cryptocurrency, TRX, also experienced a decline, dropping over 8% to $0.100, with a slight recovery bringing its current trading price to about $0.101.
The combined impact of CZ’s resignation and the negative press surrounding Tron led to a significant sell-off of TUSD. Despite efforts to re-establish its peg to the US dollar, TUSD has struggled to regain its stability, trading at around $0.996 at present. The future of this stablecoin remains uncertain as it navigates through these tumultuous market conditions.
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