On June 9th, TUSD announced that they will no longer be minting through Prime Trust. However, the company reassured that the minting and redemption of TUSD will remain unaffected and continue to operate as usual.
On June 12th, TUSD stated that they are still working to resume minting with Prime Trust.
On June 19th, TUSD reassured customers once again that the minting and redemption process is unaffected despite the temporary suspension of minting through Prime Trust.
On June 22nd, BitGo announced that they will not be acquiring Prime Trust. Later that day, Nevada issued a cease and desist order against Prime Trust.
On the same day, TUSD sent an email to customers stating that Prime Trust has temporarily suspended all deposits and withdrawals. This means that users will be unable to mint and redeem TUSD as well as any other TrueCoins, including TAUD, TCAD, and TGBP, while Prime Trust’s operations are on hold.
TUSD fell under attack following Prime Trust’s loss of payment capabilities
Earlier this week, TUSD temporarily suspended its periodic attestations of the stablecoin. This has led many traders to continue intending to short the stablecoin since then.
On Aave, traders are currently offering up to 50% APY to short the asset, with one user placing a $4 million short position on this stablecoin.
A Twitter user named etheraltog has noted that users attempting to redeem TUSD are receiving minted funds back into their wallets. TUSD experienced a slight depeg but has regained the $1 mark by midday on Friday. Two months ago, TUSD also faced a depeg as borrowing pressure on Binance increased due to suspicions regarding SUI token farming.
TUSD is currently the fifth-largest stablecoin by market capitalization, following USDT, USDC, DAI, and BUSD. The recent move to “mint” an additional 1 billion TUSD has sparked speculation within the community that it is an attempt to support BNB Coin amidst a series of FUD (Fear, Uncertainty, and Doubt) surrounding Binance, which has caused a sharp decline in the price of BNB.
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