The TrueUSD stablecoin, commonly known as TUSD, has experienced a notable drop in value, falling to $0.985. This decrease has raised concerns among its holders regarding the stability of the coin, which is supposed to be pegged to the US dollar.
Nick Ruck, chief operating officer of ContentFi Labs, offered insights to The Block, suggesting that the decline in TUSD's value is a result of panic among its holders. This sentiment is linked to growing doubts about the sufficiency of its reserves and issues surrounding Poloniex, a cryptocurrency exchange that recently suffered a security breach.
The incident at Poloniex has particularly unsettled TUSD stakeholders, prompting fears over the stablecoin's ability to maintain its peg to the dollar. The hacking event has contributed to an atmosphere of distrust and instability, leading to a mass sell-off.
In related news, the cryptocurrency community is also keeping a close eye on legal developments involving Coinbase. A significant legal proceeding is scheduled for Wednesday, Jan 17, where Coinbase's Motion for Judgment on the Pleadings will be heard. The outcome of this hearing could have implications for the broader crypto market and regulatory landscape.
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