• The TRU token of decentralized lending protocol TrueFi surged 220% on Thursday in an hour due to speculation over a Binance stablecoin transaction.
• The speculated connection between TUSD and TRU tokens is misplaced because the issuers of the two tokens have been separated since 2020.
• Binance Minted $50 million of TrueUSD (TUSD) stablecoin, potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued Binusd (BUSD).
TRU Token Rallies Over 200% After Binance’s TUSD Mint Sparks Speculation
The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is.
TrustToken sold TUSD in 2020 to a firm called Techteryx, according to an announcement by TrustToken Chief Executive Rafael Cosman at the time. The post said Techteryx is an “Asia-based conglomerate with businesses … in the traditional real estate, entertainment, environmental and information technology industries.”TrustToken also separated from the TrueFi protocol and was renamed Archblock last year, as TrueFi embarked on a road to decentralize the platform.
TRU surged as high as 14.6 cents from 4.4 cents on Binance before later paring some of the gains. The token was trading at around 11 cents at press time.Earlier this week, Paxos said it would halt minting BUSD on orders from New York regulators following its unauthorised listing earlier this month without prior approval.
Implications for Stablecoins Market
The event sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued Binance USD (BUSD). Read more: B USD Drama Sets Stage for Stablecoin Market ReshufflingHowever,misplaced because the issuers of the True USD and TRU tokens were separated a while ago.