Binance has declared a halt on trading for several stablecoin pairs, including those tied to the TrueUSD (TUSD), a stablecoin connected with Justin Sun. The affected trading pairs include COMP/TUSD, EDU/TUSD, and PENDLE/TUSD. This action is part of Binance’s commitment to ensuring high-quality market conditions by evaluating trading pairs for liquidity and volume. The suspension, set for March 15, 2024, at 03:00 UTC, also impacts other pairs such as ARPA/BNB and EDU/BNB.
While these specific trading pairs will see cessation, Binance emphasizes that traders can still access the base and quote assets through other trading avenues available on the platform. Concurrently, Binance will end Spot Trading Bots services for these pairs, aligning with the trading pause.
Market Reactions and TrueUSD Stability Concerns
This development follows TUSD’s notable drift from its US dollar peg earlier in the year, spotlighting the stablecoin’s market stability. An imbalance was evident on January 15, 2024, when TUSD experienced a significant sell order excess over buy orders by $142 million, causing its value to dip to $0.984. The 24-hour trading window further revealed a $42.3 million net outflow, attributing to more than $339.2 million in sell orders against $296.8 million in buy orders.
Scrutiny intensified around TrueUSD on January 10, due to complications in verifying its reserve attestations. The disruption in its API hampered accurate US dollar collateral valuation. TrueUSD officials linked the peg deviation to Binance Launchpool’s mining activities, suggesting they introduced short-term arbitrage opportunities, a common market adjustment phenomenon. They assured that global bank collaborations for redemption mechanisms remained robust, ensuring smooth user transactions.
Kaiko’s research highlighted a pivot in TUSD’s role within Binance Launchpool, associating it with the stablecoin’s reduced valuation. The shift underscores a critical evaluation of TUSD’s utility and market positioning.