Crypto Market Plunges as Binance Faces New Crisis: TrueUSD Minting Paused!
Overview
• TrueUSD (TUSD) has announced a pause in its minting process through crypto custodian Prime Trust.
• This development adds to the existing woes faced by Binance, following the recent charges brought against the exchange and CEO Changpeng “CZ” Zhao by the US Securities and Exchange Commission (SEC).
• Despite the pause in minting, TrueUSD assured users that services for TUSD redemption and transactions will continue to operate without any disruptions.
The Pause on Minting TUSD
TrueUSD revealed on June 10 that the minting of TUSD via Prime Trust has been temporarily halted due to unknown circumstances. This presents a new set of challenges for Binance, as it had started supporting TUSD after the SEC ordered Paxos to cease minting Binance USD (BUSD) stablecoin.
TUSd Reserves and Real-Time Balance
The majority of TUSD reserves are held in Prime Trust, alongside First Digital, Capital Union, Manual, and BitGo. As per the real-time reserve balance, the current supply of TUSD stands at 2.50 billion tokens, with USD-denominated collateral held in accounts totaling $2.08 billion. Amid rumors of insolvency surrounding Prime Trust, crypto custodian BitGo has stepped up to assure users that it is monitoring all activities related to TUSD reserves and transactions on its platform.
Implications for Binance & Crypto Market
This new crisis facing Binance could have serious implications for both the exchange itself as well as broader crypto market sentiment. The suspension of True USD’s minting process has caused a wave of panic resulting in an overall decline in cryptocurrency prices across markets worldwide. It remains unclear how this issue will be resolved or what impact it will have on Binance’s future prospects going forward.
Conclusion
True USD’s decision to suspend its minting process presents a fresh blow for Binance which is already facing major legal issues from US regulators over its operations. The uncertainty around this situation could lead to further volatility in cryptocurrency markets until a resolution is found or more clarity is provided regarding what steps will be taken next by all involved parties.
