TrueFi’s TRU token is up over 200% after Binance exchange’s TUSD press spec fired. The rally appears to be due to traders mistakenly linking TRU to TUSD, a stablecoin issued by TrueFi in the past but no longer so.
The TUSD move of the Binance exchange has blown the TRU price!
According to data from CoinMarketCap, the governance token of decentralized lending protocol TrueFi, TRU, posted a phenomenal 220% increase in an hour on Thursday. Before the rally began, Binance, the world’s largest crypto exchange, minted $50 million in TrueUSD (TUSD) stablecoins, according to blockchain data. The incident has sparked speculation among crypto traders that TUSD is potentially gaining a larger role in trading on Binance following regulatory crackdown on Binance USD (BUSD) issued by Paxos.
However, since the issuers of TrueUSD and TRU tokens diverged some time ago, speculations about TRU tokens seem false. According to an announcement made at the time by TrustToken CEO Rafael Cosman, TrustToken sold TUSD to a firm called Techteryx in 2020. The post read that Techteryx is “an Asia-based conglomerate with businesses… in the traditional real estate, entertainment, environmental and information technology industries.”
TrustToken has also left the TrueFi protocol and was rebranded as Archblock last year as TrueFi set out to decentralize the platform. “Archblock is in the final stages of transferring all TrueFi IPs and assets to the TrueFi Foundation, the legal entity of the TrueFi DAO,” a TrueFi spokesperson explained. TRU later climbed from 4.4 cents on Binance to 14.6 cents before trimming some of the gains. The altcoin was trading at around $0.11 at press time.
TRU daily price chart / Source: CoinMarketCapRegulatory pressure on BUSD lowers market value
Earlier this week, Paxos said it will stop issuing BUSD at the behest of the state regulator, the New York Department of Financial Services. Meanwhile, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to Paxos and was reportedly preparing a lawsuit for issuing unregistered securities.
According to data from crypto research firm Kaiko, BUSD is the third-largest stablecoin with a fast-falling $14 billion market cap. Also, BUSD, the second largest after Tether’s USDT, is responsible for 35% of all trading volume on crypto exchange Binance.
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