Binance Mints 50 Million TUSD Stablecoin Causes TRU Price To Spike 200%
- Binance minted 49.99 million TRU, stablecoin running on the Ethereum blockchain.
- Despite having a modest market value, the TRU token has increased by 200% from the minting in the previous few hours.
- TUSD is ranked 53 among major cryptocurrencies.
TRU surged almost suddenly after Binance issued a large number of new stablecoins TrueUSD and announced restrictions on using BUSD as the main trading pair.
Etherscan data indicates that at roughly 15 UTC on Feb 16, Binance generated 49.99 million TRU. Following Paxos’s instruction to stop printing Binance USD, or BUSD, the action was taken just a few days later. Over 35% of the exchange’s spot trading activity in January was in BUSD.
TUSD is currently ranked 53rd among the top cryptocurrencies, with a market cap of $971 million. The decision to issue TUSD, however, might be considered a part of Binance’s increased attempts to support alternative stablecoins in the wake of the collapse of BUSD.
According to Lookonchain, Alameda and Justin Sun are the two largest TUSD minters. Historically, Alameda has minted a total of 1.64 billion TUSD and Justin Sun has minted 889 million TUSD.
TUSD was originally owned by the Trust Token platform before it was acquired by Techteryx – an Asian multi-industry corporation. Trust Token also split from TrueFi and was renamed Archblock last year.
Interestingly, TUSD is one of the stablecoins that Binance conducted a balance consolidation into BUSD in September 2022. At the time, Binance stated that the reason for the switch was to improve liquidity and capital efficiency for users, but it seemed to be unconvincing.
The TRU token, which had previously been connected to TUSD, has increased by 200% since the mint despite having a modest market valuation. At the time of writing, TRU is trading at $0.09.
The New York Department of Financial Services ordered Paxos to stop issuing the stablecoin. Changpeng Zhao, CEO of Binance, stated that the exchange would be supporting BUSD for the foreseeable future.
After the SEC probe against Paxos and the objection to the application of BUSD, traders have been flocking to top stablecoins, USDC and USDT.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu