The TUSD Peg Crisis: A Brief Overview
In the early hours of June 10, the fifth-largest stablecoin, TrueUSD (TUSD), faced a surprising twist: it lost its peg to the US dollar. Trading as low as $0.9964, TUSD’s unsettling dip came after minting activities were paused through its technology partner, Prime Trust. As of now, TUSD floats at a slightly better $0.9981. Oh, the drama!
Minting Mayhem: What’s Happening?
So why did this happen? It all boils down to a pause in TUSD minting via Prime Trust. TrueUSD took to Twitter to announce the halt:
“TUSD mints via Prime Trust are paused for further notification. Thanks for your understanding and we are sorry for any inconvenience.”
Don’t you just love vague corporate apologies? They can really warm the heart! But fear not, TrueUSD assures us that minting and redemption services through other banking partners remain fully operational. Cue the sighs of relief.
Is Prime Trust in Trouble?
The pause in minting raises eyebrows, especially with recent whispers of potential insolvency regarding Prime Trust. Unfortunately, this fintech darling based in Nevada isn’t having the best year—having laid off a third of its workforce back in January. Not exactly a confidence booster for a foundational partnership.
BitGo to the Rescue?
In a plot twist worthy of a soap opera, it appears that Prime Trust is set to be acquired by crypto custodian BitGo. They signed a nonbinding letter of intent for the deal, which, while lacking in disclosed terms, could potentially fortify the beleaguered Prime Trust. Talk about a knight in shining armor!
A Rollercoaster Year for TUSD
TUSD’s dollar peg loss isn’t a one-off incident; it’s been a rocky road over the last year for this stablecoin. Market volatility is like that unpredictable friend who swings between party invitations and ghosting. Not to mention, TUSD shares its struggles with maintaining the dollar peg alongside several others in the crypto realm.
But with assets totaling $2.08 billion against a supply of $2.04 billion, TUSD’s collateral may yet sustain its market presence. As crypto enthusiasts, we can only hope for a swift resolution as these dramatic happenings unfold.
