© Reuters.
GLOBAL MARKETS – TrueUSD (), a stablecoin associated with crypto-entrepreneur Justin Sun, suffered a significant setback as its value slipped below the $1 peg. The stablecoin’s fall to $0.984 triggered a massive sell-off on cryptocurrency exchange Binance. The market reaction saw traders withdraw over $130 million from TUSD and a total of $339 million was liquidated, indicating a sharp drop in trader confidence.
This event has raised concerns among investors and traders in the cryptocurrency community, as stablecoins are typically designed to maintain parity with a stable asset such as the US dollar.
The incident surrounding TrueUSD is part of a broader debate over the stability and reliability of stablecoins, which play a crucial role in digital asset markets by providing a supposed safe haven during periods of market turbulence.
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