
Justin Sun affiliated TrueUSD market cap collapses 50% in 7 days
The dollar-pegged stablecoin TrueUSD, associated with Justin Sun, has experienced a significant decline in its market capitalization, plummeting by over 50% from $1.29 billion on March 15 to $615 million on March 22, as reported by CoinMarketCap.
This decline in TrueUSD's market cap coincides with Binance's decision to delist several TrueUSD trading pairs on March 15. TrueUSD faced challenges in February in maintaining its peg, dropping to as low as $0.95.
Furthermore, an examination of TrueUSD's attestations suggests that it no longer holds United States treasury bills in its reserves. Instead, the remaining funds are divided between approximately $200 million held in depository institutions in Hong Kong, Switzerland, and the Bahamas, and approximately $500 million held at First Digital Trust Limited.
First Digital Trust Limited has introduced its stablecoin, FDUSD, which has also experienced a decrease in market capitalization from around $3 billion to $2.6 billion since March 15, according to CoinMarketCap data.
However, not all stablecoins have been impacted equally by this contraction. Tether, for instance, has seen its market capitalization increase by approximately $700 million since March 15.
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