The TrueUSD stablecoin, associated with Justin Sun, has faced a continuous depeg, reaching as low as $0.97 as traders opt for USDT over TrueUSD. This depegging has triggered significant discontent among users across various exchanges and social media platforms.

The decline in TrueUSD began on January 15th, dropping from its $1 peg at 11 AM UTC to as low as $0.984 by 11:15 PM. Subsequently, on Thursday morning, it further declined to $0.9708 before making a partial recovery, rising to $0.9897.

The depegging coincided with reports of users selling hundreds of millions of dollars’ worth of TrueUSD through the TUSD-USDT trading pair. Notably, $330 million worth of TrueUSD has been dumped so far, with $238 million sold within the past 24 hours alone. Data indicates buy orders amounting to only $296 million, resulting in a net outflow of approximately $42 million for the stablecoin.
The instability in TrueUSD’s price has been evident for weeks, particularly on the Poloniex exchange, where it traded nearly 8% below its peg. In contrast, its price remained relatively steady on Binance. Concerns arose as users, including the pseudonymous X user Rho Rider, highlighted arbitrage trading opportunities. Speculation also arose that the sell-off may be linked to TrueUSD not being included among the assets in Binance’s MANTA launch pool initiative.
Reports on January 10th suggested a pause in real-time attestations of TrueUSD’s reserves, fueling suspicions that the stablecoin was inadequately collateralized. However, the company attributed this to internal errors, clarifying that it was caused by temporary imbalances in normal operations and has since been rectified.
Despite these challenges, TrueUSD announced a partnership with Hong Kong-based accounting firm MooreHK, aiming to enhance its fiat reserve audit system. MooreHK, a member of the globally renowned Moore Global network, will provide daily attestation services, offering detailed insights into the reserve funds under its financial and fiduciary partners’ custody.