Trader Takes Advantage of TrueUSD's Banking Woes, Opens On-Chain Short Position

Recently, a trader has made a strategic move by opening an on-chain short position on TrueUSD (TUSD), a stablecoin. This decision came after the issuer faced challenges with its banking partner, Prime Trust, which led to the suspension of mints and redemptions.

Timeline of Trueusd

TrueUSD has swiftly moved to restore confidence in its dollar-backed TUSD stablecoin after Nevada-based Prime Trust, a crucial technology partner, faced regulatory hurdles. Prime Trust's abrupt suspension of all fiat and cryptocurrency deposits and withdrawals, following state financial regulators' orders, left many clients stranded and concerned about their funds.

Binance has announced a new zero-fee promotion for TrueUSD (TUSD) trading pairs. However, this strategic move, scheduled to commence on June 30, 2023, is predicted to stimulate the crypto-market dynamics by extending its feeless trading opportunity to a wider audience.

On June 16, TUSD supply surged by 52%! The difficulties the dollar-pegged token economy was facing were recently brought to light when significant redemptions caused its market valuation to drop to a 20-month low.

The TrueUSD (TUSD) stablecoin has temporarily paused its automated attestations due to possible balance discrepancies. The stablecoin project also encountered some glitches last week.

Despite the decline in stablecoins due to substantial redemptions, particularly from projects like USDC, DAI, and BUSD, the project TUSD has experienced a notable surge in its supply. TUSD has added more than a billion dollars' worth of tokens to its existing supply.

Hong Kong's Financial Secretary confirmed that the country's digital initiative Cyberport has attracted over 150 web3 firms. Cyberport is managed by the wholly owned subsidiary of the Hong Kong SAR Government.

Key Points: Famous crypto player Justin Sun has announced he will donate 10,000 TUSD to crypto detective ZachXBT as he faces a defamation lawsuit. An hour ago, Justin Sun, founder of TRON and a Huobi's Global Advisory Committee member, announced on Twitter that he would be donating 10,000 TUSD to ZachXBT.

In recent updates, the TrueUSD (TUSD) team has announced that they are actively engaged in efforts to resume TUSD minting on Prime Trust. This announcement was made following an unexpected pause in TUSD minting via Prime Trust, an event that took place on June 10.

TrueUSD (TUSD) has regained parity with the U.S. dollar. The stablecoin lost true parity with the US Dollar on June 10 amid mounting community concerns over its minting and redemption activities.

TrueUSD, the prominent stablecoin, has made the unexpected decision to suspend its token creation via Prime Trust, leading to speculation and uncertainty within the industry. While the move has raised questions, TrueUSD has reassured users that it maintains strong relationships with other banking counterparts, ensuring uninterrupted transactions.