Justin Sun affiliated TrueUSD market cap collapses 50% in 7 days
TrueUSD, the dollar-pegged stablecoin affiliated with Justin Sun, has seen its market cap collapse more than 50% from $1.29 billion on March 15 to $615 million on March 22, according to data from CoinMarketCap.
This mass redemption of TrueUSD follows Binance’s delisting of several TrueUSD pairs on March 15. TrueUSD spent much of February struggling to maintain its peg, falling as low as $0.95.
A review of the attestations provided by TrueUSD also seem to show that it no longer has United States treasury bills in its reserves. The remaining funds are split between approximately $200 million held “at a Hong Kong depository institution, a Swiss depository institution, and Bahamian depository institutions” and approximately $500 million held at First Digital Trust Limited.
First Digital Trust has also launched its own stablecoin, FDUSD, which has seen its own market cap fall from approximately $3 billion to $2.6 billion since March 15. Again, this is according to data from CoinMarketCap.
Read more: TrueUSD attestations paused again, this time for improper ‘balances’
This contraction hasn’t affected the entire stablecoin market equally. Tether has seen its market cap grow by approximately $700 million since March 15.
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