TrueUSD had balance problems when liabilities exceeded assets
Auto-certification of the stablecoin TrueUSD (TUSD) has been suspended due to balance issues.
During the last reporting interval, the real-time reservation system received an error response, as a result of which the total amount of liabilities exceeded the amount of underlying assets. Protos writes about it.
TrueUSD has had to suspend the redemption and issuance of coins associated with cryptocurrency custodian Prime Trust, which is in the process of closing an acquisition deal with BitGo. However, TrueUSD assured that there are other redemption and minting options for tokens.
The attestation system with the ripcord function notifies users in case of problems that may prevent the attestation of reserves in real time. The operation of this function usually indicates that there is a temporary balance mismatch.
Decoupling TrueUSD from the US dollar
On June 10, ripcord TrueUSD was also activated. At the time, the TrueUSD team stated that the incident occurred due to technical problems that arose as a result of the test minting of stablecoins by a new banking partner.
This happened after the TrueUSD stablecoin lost its peg to the US dollar due to the suspension of token minting through Prime Trust. Then the price of the “stablecoin” dropped to $0.9964. At the time of writing, the stablecoin has recovered against the dollar.
High hopes for TrueUSD
The fifth-largest stablecoin by market capitalization gained popularity after stablecoin issuer Paxos stopped issuing the Binance (BUSD) stablecoin. As a result, the largest crypto platform had to look for an alternative to the stablecoin.
Binance chose TUSD, which is positioned as “the first regulated stablecoin fully backed by the US dollar.” In mid-March, the exchange also launched the first trading pairs with TUSD – BNB/TUSD, BTC/TUSD, ETH/TUSD, TUSD/USDT, USDC/USDT and USDP/USDT. A month later, in mid-April, the stablecoin was launched on the BNB Chain blockchain as a native token.
Source: bitcoinlinux.com
