TrueUSD (TUSD), a stablecoin associated with Tron founder Justin Sun, has enlisted the daily attestation services of an accounting firm as it endeavors to restore its peg to the U.S. dollar.
The TUSD stablecoin experienced a loss of its peg to the U.S. dollar on January 15, dropping to $0.984 at 11:15 PM UTC. The decoupling coincided with traders selling over $339 million in TUSD on the Binance exchange within 24 hours, resulting in total net outflows from the exchange amounting to $42.3 million.
In a post on January 18, TrueUSD attributed the decoupling to "community mining activity related to Binance Launchpool," stating that it created short-term arbitrage opportunities for traders. There were also speculations among X (formerly Twitter) users that the decoupling might be linked to the stablecoin not being included as an asset in Binance's Manta issuance pool plan. Additionally, reports surfaced on social media on January 10, indicating that TUSD was facing challenges in providing real-time proof of its reserves.
Following the incident of decoupling, the TrueUSD team announced an upgrade to its fiat reserve audit system. Alongside the existing provider, The Network Firm, the company has engaged the services of Hong Kong-based accounting firm Moore to conduct day-to-day certification of stablecoin fiat reserves.
Under the new system, reports will include details of reserves held by TrueUSD's financial partners. Michelle Chu, an executive at MooreHK, mentioned collaboration with The Network Firm to enable TUSD users to monitor their reserves. Despite the efforts to implement new systems for proving fiat reserves, the price of the stablecoin continued to decline, reaching $0.97 on January 18, according to the coin information tracker CoinMarketCap.
