• TrueFi’s TRU Token surged over 200% after Binance’s TUSD mint sparked speculation.
• The rally was likely due to traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but is no longer associated with them.
• The speculation appears to be misplaced as TrustToken sold TUSD in 2020 and it is now owned by Techteryx, an Asia-based conglomerate.
TRU Token Rallies Over 200% After Binance’s TUSD Mint Sparks Speculation
The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is. By Krisztian SandorFeb 16, 2023 at 6:03 p.m. UTCUpdated Feb 16, 2023 at 7:24 p.m. UTC
TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour, data by CoinMarketCap shows, in a speculative flurry over a Binance stablecoin transaction. Before the rally took off, Binance, the world’s largest crypto exchange by volume, minted $50 million of TrueUSD (TUSD) stablecoin according to blockchain data. This event sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued Binance USD (BUSD).
TrueFI and TrustToken Separation
TrustToken sold TUSD in 2020 to a firm called Techteryx according to an announcement by TrustToken Chief Executive Rafael Cosman at the time. The post said Techteryx is an “Asia-based conglomerate with businesses … in the traditional real estate, entertainment, environmental and information technology industries.” In addition TrustToken also separated from the TrueFi protocol and was renamed Archblock last year as TrueFi embarked on a road to decentralize their platform .
TRU surged as high as 14.6 cents from 4.4 cents on Binance before later paring some of its gains and trading at around 11 cents at press time .
The speculation about the TRU token appears to be misplaced because the issuers of both tokens have since been separated for quite some time now .