After securing a Binance listing, it is customary for cryptocurrencies to pump. Gaining as much as 50 percent in a matter of hours, every week a handful of tokens enjoy the “Binance Bounce”. Although, Trueusd was formed to be different. And yet, the unthinkable happened, when Binance announced that it was adding TUSD.
The making of Trueusd as a False Stablecoin
With scores of projects searching to establish tether alternatives that offer stability, each pegged against the US dollar, the stablecoins are burgeoning industry. Circle has only declared preparations to launch its own stablecoin, and recently news.Bitcoin.com profiled numerous other fresh competitions which include Trueusd which was detailed as:
“A collateralized stablecoin backed by USD held in escrow accounts. It’s basically a more transparent tether and is available on Upbit and Bittrex – where it’s even tradable against tether.”
The newest and biggest exchange to declare its motives to list TUSD became Binance on May 16. The coin had performed as predicted, with a slight wobble from its dollar peg, up until this date. However, Binance announced its news and TUSD “went on a run to rival even the bumpiest of altcoins” as reported by NewsBitcoin.com. Trueusd was trading at $0.997 at 3:36 am ET respectively. For a coin whose defining characteristic is that isn’t meant to rise, in the space of 22 minutes, it jumped to $1.18 and rose to $1.39 by 5 am which amounts to a 39 percent rise.
Binance announces open trading for TUSD/BNB, TUSD/BTC, and TUSD/ETH trading pairs
Binance announced in a short blog post that at 2018/05/18 04:00 AM (UTC), it would start trading in TUSD/ETH trading pairs, TUSD/BTC, and TUSD/BNB trading pairs. Now, clients can commence depositing TUSD subsequent to trading, as reported in a short blog. The blog continues that the value of the TUSD is establishing to be 1USD=1 TUSD and further emphasize TUSD is a stablecoin. The power of Binance listing is clearly not accounted for in the design. Regardless of the team behind TUSD, Trust Token claiming “Our open source smart contracts ensure a 1:1 parity between TrueUSD and USD in the accounts”, as reported by NewsBitcoin.com.
TUSD may have just proven its unsuitability as a stablecoin and enhanced the case for tether, by it being increased by 39 percent, ironically. Tether might be impervious, nevertheless, it works at least, remaining determinedly near its dollar peg at all times. Due to traders FOMO-ing into the coin, Trueusd seems to have spiked. It is not certain if all of these buyers had the knowledge that they were buying a supposed stablecoin. Eventually, the price will return to its designated price and settle down. However, a stable coin that can appreciate by almost 40 percent may be capable of diminishing in value as well.