TrueUSD (TUSD) Market Cap Plummets 80% After Binance Delisting

Stablecoin TrueUSD (TUSD) affiliated with Justin Sun lost nearly 80% in market capitalization after crypto exchange Binance removed several trading pairs with it.

Stablecoin TrueUSD (TUSD) has seen a significant decline in market capitalization, losing nearly 80% after several TUSD pairs were delisted on Binance, according to data from CCData.

The stablecoin, which is now issued by TrustToken (operating as Archblock), saw a drop of 78.9% in market cap, CCData revealed in its latest stablecoin research report.

As a result of the delistings, the monthly trading volume for TUSD pairs on centralized exchanges has also fallen drastically, reaching $569 million — a decline of nearly 99% since May 2023, the report noted.

“Binance remains the dominant exchange that trades the most TUSD pairs with a market share of 68.2%,” the report stated. “WhiteBit and BitMart follow with a market share of 13.4% and 5.32%.”

However, the stablecoin did introduce a zero-fee trading promotion for the TUSD/TRY pair on Bitci to boost its adoption, the report added.

Meanwhile, CCData also reported that the total market value of stablecoins rose by 0.63% to reach $161 billion in May, marking the eighth consecutive month of growth and reaching the highest level since April 2022.

“This increase signifies a recovery in the stablecoin market, which had been in a seventeen-month downtrend following the collapse of TerraUSD,” the report stated.

TrueUSD was launched in March 2018 by TrustToken, a firm co-founded by Rafael Cosman, Stephen Kade, Jai An, and Tory Reiss.

The stablecoin was designed to provide a transparent and legally protected stablecoin that is fully collateralized by the U.S. dollar, ensuring its value remains stable.

However, following its removal from Binance and issues with custodian Prime Trust, TUSD has several times lost its peg to the U.S. dollar, raising concerns about the stablecoin’s reliability.