- According to Kaiko Research, a recent decision by Binance is significantly impacting the value of TrueUSD (TUSD).
- The TUSD stablecoin depegged following its removal from among the staked stablecoins on Binance’s two Launchpools.
- Until last week, over $1 billion TUSD tokens were regularly staked on the Binance exchange.
According to Kaiko Research, a leading crypto market data and analytics platform, a recent decision by Binance is significantly impacting the value of TrueUSD (TUSD). Kaiko noted that the TUSD stablecoin depegged following its removal from among the staked stablecoins on Binance’s two Launchpools.
In a notable development, Binance recently altered the operational model of its Launchpools by removing TUSD as one of the staked tokens, leaving only BNB and FDUSD. Before the removal, users on the exchange could stake any of the three tokens to receive rewards in the form of newly launched tokens.
Until last week, over $1 billion TUSD tokens were regularly staked on the Binance exchange, representing over half of the stablecoin’s market cap. However, its removal from the Binance Launchpool triggered a mass selloff of the stablecoin. Kaiko’s Cumulative Volume Delta (CVD) metric showed a $150 million net selling of TUSD ahead of the removal by Binance.
The selloff caused TUSD to lose parity with the US Dollar, leading to a common depeg. However, the situation escalated after the Launchpool removal was confirmed, with users realizing that TUSD’s top use case had vanished.
Per Kaiko’s report, a net of over 200 million TUSD has been sold on Binance, causing the stablecoin to further depeg and slump. The research platform noted that the stablecoin fell to a low of just over 0.97 USDT on January 18. However, TUSD has since staged a recovery. It has leveled up on CVD value and nearly restored parity with USDT.
Binance’s reason for removing TUSD from its Launchpools remains unclear. However, the stablecoin’s recovery continues, as it traded for 0.9841 USDT at the time of writing, according to data from TradingView.
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