As some companies say their redemption requests were rejected, stablecoin TrueUSD (TUSD) continues to sway off its peg, trading as low as 96 cents early on Thursday before rising to 99 cents.Trading data from Binance shows that there has been a negative net flow of $174.5 million due to traders selling $303.5 million in TUSD versus purchases of $129 million.
A sizable quantitative cryptocurrency trading company that spoke with CoinDesk over the phone claimed that its redemption requests had been turned down and bemoaned the challenges it was having to convert TUSD into fiat following the collapse of cryptocurrency custodian Prime Trust.
A request for comment from TrueUSD spokespeople was not answered.Justin Sun, the founder of Tron, and TUSD have a strong relationship.As a result, information from the on-chain research tool Arkham Intelligence revealed that one of Sun’s wallet addresses sent nearly $60 million to the cryptocurrency exchange Binance in the last five hours, ahead of TUSD’s rise back to the $1 mark.
Then $50 million worth of TUSD were removed from Binance and placed into the wallet.Whether this wallet is Sun’s, it has not been independently confirmed by CoinDesk.In the previous two hours, as of late afternoon Hong Kong time, $1.8 million has been injected into TUSD, according to data from Binance.One major challenge for stablecoin issuers is that holders of the cryptocurrency are unable to exchange their stablecoins for US dollars, which undermines market confidence and causes a de-pegging of stocks.
Given that Circle had $3.3 billion in USDC reserves at Silicon Valley Bank and that Signature Bank was a crucial component of the redemption infrastructure, during the crypto banking crisis of last spring, Circle’s USDC momentarily de-pegged when SVB failed and regulators closed down Signature Bank.The amount of TUSD in circulation has decreased from about $2.3 billion at the beginning of the year to $1.9 billion, according to data from Glassnode.