• TrueFi’s TRU token rallied over 200% after Binance’s TUSD mint sparked speculation.
• The speculation appears to be connected to TUSD, a stablecoin previously issued by TrueFI but no longer is.
• The rally was likely caused by traders mistakenly connecting the two tokens.
TrueFi’s TRU Token Rallies Over 200%
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 Sandor Feb 16, 2023 at 6:03 p.m. UTC Updated Feb 16, 2023 at 7:24 p.m. UTC
Background of the Rally
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. The 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).
Mistaken Connection between Tokens
However, the speculation about the TRU token appears to be misplaced because the issuers of the TrueUSD and TRU tokens were separated a while ago. 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.” TrustToken also separated from the TrueFi protocol and was renamed Archblock last year as TrueFi embarked on its road to decentralize its platform.
TRU Price Movement
TRU surged as high as 14