- TUSD announced non-exposure to Prime Trust amidst insolvency concerns.
- TUSD netflow maintains regular activity as users show concerns.
True USD [TUSD] emerged as a prominent player in the cryptocurrency scene, garnering increased attention earlier in the year. This rise in prominence was accentuated when Binance generated an impressive 130 million TUSD within a single week.
The move was a response to the regulatory actions taken against BUSD. Nevertheless, recent events involving Prime Trust have sparked conversations and deliberations regarding the future trajectory of the stablecoin.
TUSD detaches itself from Prime Trust troubles
In a recent update shared on 22 June, TUSD reassured its users that the stablecoin remained unaffected by the recent developments surrounding Prime Trust. According to a report from the Nevada Department of Business and Industry, Prime Trust faced a shortfall in customer funds.
It resulted in the inability to fulfill all withdrawal requests this month. The report further highlighted the significant deterioration of Prime Trust’s overall financial condition to a critically deficient level.
Despite these circumstances, TUSD consistently reiterated through multiple posts that it continued to operate without disruption. However, some users raised concerns, particularly concerning an email allegedly sent to some users.
Reservations climb
Contrary to the statements made by TUSD, some users held a different perspective on the current state of affairs surrounding the stablecoin, considering the recent developments. According to a post by Mike Burgersburg, the team reportedly sent emails to its customers, informing them that the redemption of TUSD was temporarily suspended due to the Prime Trust event.
Additionally, another user provided evidence indicating that when a redemption request was submitted, the stablecoin was being reminted instead. These instances raised doubts and skepticism among some users regarding the stability and transparency of TUSD in light of the ongoing situation.
TUSD exhibits business as usual…for now
Amidst the ongoing drama, an examination of TUSD’s netflow on CryptoQuant revealed encouraging signs of normalcy. The netflow displayed a positive flow without noticeable spikes. This indicated regular activity within the stablecoin ecosystem. At the time of writing, the netflow exceeded $5 million.
Source: CryptoQuant
Furthermore, an analysis of the exchange reserve associated with the stablecoin did not indicate any irregularities. The exchange reserve stood at over 500 million units, and an upward trend was also observed.
Source: CryptoQuant
Additionally, according to data from Coin Market Cap, TUSD boasted a current market cap surpassing $3.1 billion. Furthermore, trading volume exceeded $2 billion within 24 hours. Although this remains an ongoing development, the upcoming days will prove crucial in determining the future trajectory of TUSD.
