• TrueFi’s TRU token surged over 200% after Binance minted $50 million of TUSD stablecoin.
• Speculation was sparked that TUSD could gain a larger role in trading on Binance after the crackdown on the Paxos-issued BUSD.
• The issuers of TrueUSD and TRU have been separated since 2020, and TrustToken (now Archblock) transferred all its assets to TrueFi Foundation.
TRU Token Rallies Over 200% After Binance’s TUSD Mint Sparks Speculation
The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is. By Krisztian SandorFeb 16, 2023 at 6:03 p.m. UTCUpdated Feb 16, 2023 at 7:24 p.m. UTC
TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour, data by CoinMarketCap shows, in a speculative flurry over a Binance stablecoin transaction. Before the rally took off, Binance minted $50 million of TrueUSD (TUSD) stablecoin according to blockchain data.
The event sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued BUSD. This speculation seems to be misplaced however as TrustToken sold TUSD in 2020 to Techteryx and then renamed itself Archblock last year when it separated from TrueFi protocol and began decentralizing the platform.
TRU surged as high as 14.6 cents from 4.4 cents on Binance before later paring some of the gains and trading at around 11 cents at press time..
B USD Drama Sets Stage for Stablecoin Market Reshuffling showed us that despite misconnections between tokens related to their issuers still happen there are steps being taken towards more regulation within this space so that these mixups can be avoided or eliminated altogether soon enough!