Bitcoin Forum

Looks like there might be another depegging going on. Apparently the company who is in charge of TUSD has gone in receivership. And there is speculation that TUSD is insolvent.

Word is out that it’s being propped by Binance and will soon depeg. Apparently you can’t redeem TUSD anymore. Someone tried to redeem for USD and got sent USDT instead. Currently it’s popular on Binance due to 0 fees and much of this stablecoin is locked up.

However if you look at the curve stats you can see that something like 70% is of the TUSD stablecoin. Also looks like a slight depeg just started at 0.9975

This instability might be due to the conversion of OLD TUSD to NEW TUSD which is supported by Binance as you said TUSD is now propped by Binance. (source (https://www.binance.com/en/support/announcement/binance-will-support-the-trueusd-tusd-contract-swap-52b29fadf71542afabf23acf3454f9c7)). Or maybe there could be another reason behind it. But I found only this.

To what extent it could impact the market, as there is other news in the market that will disappear this news in some pile of news? Or is there any catch in this news that i am not able to understand then please help me i am all ears.

According to their webside, they have generated 3.139 billion stablecoins (liabilities) and thay have 3.146 billion dollars (collateral), so they have a surplus of 7 million dollars. Everything looks good, if not the fact that the "Independent Accountant's Report" is signed by "The Network Firm LLP", about which you can't find much on the Internet. Do you know anything about them?

I didn't have a lot of TUSD, but I converted them today (thanks to OP) before the possible FUD kicks in (if it does). depeg is now at 0.05% so its not much for safety of funds - later it may be worse.

This is worrying, technically since the bear market seems to be over I hoped for stable coins to stop giving us such nasty surprises, the last time this happened I did not really expected for a depeg to happen and yet it did, so anyone holding this coin should be incredibly careful as they could lose a lot of money in a short amount of time if such an event were to happen, and if it did I wonder who in his right mind will keep holding stable coins? As they are proving they are anything but stable.

Someone like me don't really make ise of any other coin aside USDT, just because I've checked and see the rate for its adopt is more widely acceptable than any other due to it application and trust people have in using it, we havebto go for standards in some conditions than making no research about some investment we made, it's quite enough to always avoid being a victim of all these low reputable currencies.

I think 0.9975 is meaningless but stable coins in general are possessing a very serious threat to the business. Especially tether is a ticking bomb. We don’t know when will it go down but it will go down sometime in the future that’s for sure. The best thing we can do to protect ourselves from such a catastrophe is to hold real crypto currencies like bitcoin, eth, ltc… and we should hold the private keys of these funds. That’s because when a stable coin goes down, some exchanges will go down with them. (And with their customer’s funds) I cannot take that risk, nobody should.

Will tusd go down anytime soon? I don’t know. However I know that I don’t want to hold it for a long time. Not worth the risk.

What I think is that anything that would affect TrueUSD to be deppeged would have first affected the coin marketcap. TUSD marketcap may not be growing like those of USDT and USDC, but the marketcap is still growing and not falling. All you said about it is true, but I do not think this is related to what could lead to the coin to be depegged because its marketcap is not affected and nothing heard yet that can decrease the marketcap to the point of affecting the coin price.

So far, it seems that TUSD has been stabilized, as it has almost returned to the levels of ~ one dollar, but as it is linked to binance, I think that the reason is binance’ attempt to keep its BNB currency, and therefore binance resorted to selling Bitcoin and all stablecoins in exchange for keeping BNB above 200 USD.

In general, there is no smoke without fire, if you have any stablecoin, especially TrueUSD (TUSD), now may be a good time to sell.

I don't think its the reason for depeg. Binance is not directly linked to tusd (like it was to BUSD), from what I know all they did, that might point at potential partnership is fee reduction while trading on BTC/TUSD and TUSD staking in lauchpools. But it seems to me more like a desperate attempt to move the volume from USDT to avoid a situation where the entire market (and thus binance's business) depended on 1 stablecoin rather than proof that they are connected

And as for trying to keep BNB above $200, binance is burning $600M in BNB every quarter, which is 7% per year. And its only a 20% of their profits which they claim are mostly in BNB. Binance officially gave up the rigid 20% it guaranteed during ICO, but when I talked to a binance employee from the Polish telegram, he said it was due to the legal problems that such a fixed target caused, and 20% is the value they try to stick to. So from pure profit they can buy all existing BNB @200$ in 3 years so I don't see a reason why should they protect 200$. its not a highly indebted company that needs additional financing by issuing new shares at the best price. Its not a shilled shitcoin like luna that will collapse if price drops.

Also there is no increased volatility on BNB today. it's pretty much flat for last 2 weeks.

I don't find any reasons to have more stable coins since we already have many stable coins with high trading and market cap volume still it's highly risky cause it's centralized and can fall to zero on just a blink. I don't know the existence of TUSD but since it's mostly available on Binance then we can expect such pressure on them since Binance has their own stable coin which is BUSD so they won't let other stable coin usage.

I have seen it shaking way worse before. Might be just starting but in charts it doesn't seem that much.

https://talkimg.com/images/2023/06/29/SL2Kz.png

Funny thing is that all of these coins were created as alternative to ustd because people thought it wasn't going to be solvent enough and there was market for alternatives.

USDT is still standing, and it had the most fud any stable coin ever recieved. That says something.

For a long time I have been trying to invest in several pairs of these stablecoin to reduce the risk of anything happening to USDT, but the days prove to me that the stability of these currencies depends on the availability of liquidity, which exists only in USDT, and therefore the more I invest in these stablecoins, the greater the risks, not reducing them . USDT is currently the security, but in the coming years it may not be so, so I think that the end of these stablecoins is near and they may not be with us after a decade.

Thinking of reducing TrueUSD deposits is a necessary idea now.

Yeah, when we think that we have more options that USDT as we might be looking as we don't trust USDT, comes a lot of those other coins de-pegging themselves. So there is still a big risk for some of the stablecoins in the market right now.

So far upon checking, it seems that it is still depegged, although it's close to $1.

But still, it's better to stay away from TUSD until they somewhat become stable.

This issue is quite serious, but I also consulted some sources but it really doesn't worry me much because this is not the first time a stablecoin has encountered this situation, remember USDT has also depeg quite a deep, and in the case of TUSD it is also showing signs although not at a very deep price. But the problem here is that the stability of these things is guaranteed and the intended use of it is not done with what is going on, although I think we should be more calm with this information as well.

So if a stablecoin depeg from USD, we need to be calm? what about TerraUSD where the price is very far from $1?

You can't just say if a stablecoin depegged because the price isn't went to deep, that's a sign if the stablecoin might deppeged in the future. The reason why USDT is keep standing is the adoption is very high and the volume transactions is the most highest among other cryptocurrency.

When USDT has depeg quite a deep, the lowest recorded price was at the beginning of the currency in 2015, and then $0.92 was recorded as the lowest price during the past years.



It is true that USDT does not have assets that cover the costs of stabilizing the currency, but there is a lot of liquidity and there is confidence in them, since the currency has not yet detached from it, and this thing can happen at any time.
The risks of stable currencies lie not only in losing their value, but also in their centralization. These currencies can be frozen even if they are in your wallet.
source ---> PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets (https://bitcointalk.org/index.php?topic=5204055.0)

The top cryptocurrency communities should rally round this and protect it from depending like the protected the USDC when it was perceived to be about to have the same problem. A failed top cryptocurrency project is a reference for the world government to debate against cryptocurrency and we can't allow them to be making points against this.

It's not that far off from the $1 peg; it was way worse a few weeks ago, after it stopped minting activities via Prime Trust, causing it to lose parity for a few days, going as low as $0.995. My main concern is that we resorted to stablecoins as a means to secure our funds without turning them into fiat, and we're constantly subject to similar incidents; even the giants USDT, USDC, and BUSD have suffered similar issues before, but fortunately were quick to recover their parity. Until one day they don't, which isn't as unlikely as we want to believe, especially those algorithmic stablecoins such as TUSD, USDD, and many others.

Personally, while I don't worry too much about losing my money on a possible depegging of a stablecoin, although I've already lost a decent sum when Terra crashed (UST), it's frustrating to see FUD and price fluctuations on something that's supposed to be stable.

The community can’t do much about this especially if the project developer are the one in fault here. Let’s not see if this will go to the worst scenario but i think this is just a result of some fluctuations. The question is, can TUSD have an enough asset if ever the worst happen. If you think holding this stablecoin can help you, better to assess your strategy again and be safe from this stress.

Not the first time yes but alarming considering that they are claiming to be a stablecoin in this market.
Many already learned their lesson from UST and that includes me, better not to hold any of those stablecoins because its not safe as well. This might only because of the price fluctuations but if there's an issue already, that can be a warning for you to get out of that coin and hold somewhere else.

Without a doubt it can be a frustrating experience, but I think that what is happening is that governments do not want to tolerate stable coins anymore, they cannot get rid of bitcoin no matter what they do, but to accept a bunch of private companies to somehow go around their monopoly is something they cannot allow anymore.

With this in mind I would not be surprised if during the next decade all stable coins disappeared, and people which wanted to protect themselves in the case of a market crash had no other option but to sell their coins and get fiat in return.

Been a few days since I posted this and it still seems to hold the peg. I am sure many holders were worried and just switched to USDT or USDC and it’s still holding up. Very strange.

Some exchanges like Kraken even added TUSD perps where you can short it if you think it will depeg. Crazy times.

I have exchanged TUSD to USDT and USDC. I feel worried about the current state of the market. Even though they guarantee as a stablecoin and they have collateral, but it is important for me to secure my assets to another stable coin for now.

Be careful with USDC, it was not long ago that stable coin also present problems and some people had to accept some losses when they had to sell their USDC below the dollar parity, now this may bring the question about which stable coin is safe at all right now to hold?

And unfortunately I think there is no stable coin safe to hold right now, even if it was stated over and over again that this day may come many people seem to be unprepared for the real possibility that in the future governments will attack stable coins with everything they have, as they are direct competitors to their CBDCs.

For me, USDC and its centralized model, which is DAI, is much better than USDT, but due to the high liquidity that USDT enjoys, its use in platforms is much higher. Therefore, it is better to withdraw all your investments in stablecoins into cash and leave a very small percentage in investments such as USDT by 40%, USDC by 30%, and DAI by 30%, and the higher the percentage of DAI, the better.

Investing in other stablecoins pairs is dangerous and I do not recommend it at all.

I store chtablecoins only in DAI, they have the most honest statistics, but the price of DAI is pegged to the price
https://daistats.com/#/
https://makerburn.com/#/

https://www.theblock.co/post/235837/makerdao-purchases-additional-700-million-in-treasury-bonds
"MakerDAO increased its U.S. Treasury bond holdings to $1.2 billion after a $700 million purchase.
The organization initially purchased $500 million in bonds in October 2022. "

But the company begins to take bonds and banking assets as collateral, which makes the stablecoin dependent on these assets.

This is a good option, I do not know what the current possession is as collateral, but it is clear that DAI was exposed to USDC, which caused their value to drop, just as it happened with USDC, and they could not recover the value of 1 dollar until after USDC regained its value.
I hope that there will be a better diversification of investments in Bitcoin and some other assets to ensure that what happened will not be repeated.

The currency is decentralized but maintaining the level of one dollar is central.

I don't believe that there's any guarantee or security with either of them. Some, at least, seem to be a little safer than others. USDC did indeed face some issues a little over a month ago, which resulted in the coin losing parity with the U.S. Dollar, but recovery came within a day or two at most. So far, most if not all major stablecoins such as USDC, USDT, TUSD, and BUSD have shown that even when 1:1 parity is lost, the recovery is usually imminent in less than a day or two. Certainly, there are exceptions to this rule; UST was one of the largest in capitalization but still suffered huge losses due to the Terra incident.

Even TUSD, which the article is referring to, recovered within one or two days at almost 1:1 parity, and a few days later, it was back to normal, suffering zero losses. I believe that the FUD around a possible depeg on stablecoins creates a broader issue than the depeg itself.

I think like most people in this forum. TUSD is still very worrying pegged to the dollar. This means that people will trust USDT, USDC or BUSD more. I'm more careful and I'd rather wait to see how TUSD develops in the future.