• TrueFi’s TRU token surged over 200% after Binance issued TUSD stablecoin.
• The rally appears to be sparked by traders mistakenly connecting TRU with TUSD.
• TrustToken and TrueFi have been separated since 2020 and TrueFi is now embarking on a road to decentralization.
TRU Token Rallies After Binance’s TUSD Mint Sparks Speculation
The rally of the governance token of decentralized lending protocol TrueFi, called the TRU token, surged 220% on Thursday in an hour due to speculation surrounding a Binance stablecoin transaction. Binance minted $50 million of the TrueUSD (TUSD) stablecoin which caused traders to speculate about its potential role in trading on Binance after a regulatory crackdown on the Paxos-issued Binance USD (BUSD).
Separation of TrustToken & TrueFI
TrustToken sold TUSD in 2020 to a firm called Techteryx and also separated from the TrueFi protocol, becoming renamed Archblock last year as TrueFi began its journey towards decentralizing the platform. The TrueFi Foundation, the legal entity for their DAO, is currently in the process of transferring all IP and assets from Archblock.
TRU Rally & Price Parity
The speculation around TRU caused it to surge as high as 14.6 cents from 4.4 cents on Binance before later paring some gains, trading at around 11 cents at press time. This was shortly followed by Paxos stating that they would be halting mintings of their own stablecoin; BUSD, which further increased speculation around other players in this market such as TUSC and TRU.
Stablecoins’ Role In Crypto Trading
Stablecoins have become increasingly popular within crypto markets due to their low volatility and ability to be used as a reliable store of value or unit of account similar to fiat currencies without needing government backing or regulation. This has made them highly attractive for both investors looking for security and traders looking for leverage when trading digital assets. However, with more regulatory scrutiny being placed upon these coins it is important that users be aware of who is actually issuing these coins before investing any money into them.
TrueFI & Decentralization
TrueFI has begun its path towards becoming fully decentralized in order to increase transparency within the platform while allowing users more control over their investments without needing trust any third party entities or intermediaries while still enjoying all the benefits associated with blockchain technology such as lower transaction fees and quicker settlement times than traditional banking systems offer today.. With this move towards decentralization comes increased responsibility for users when investing into any asset and should not be taken lightly before risking any capital into highly volatile markets such as cryptocurrency