TrueUSD (TUSD) Officially Launches on Binance with Increased Supply
The fixed-price asset started trading on the leading exchange, adding liquidity similar to Tether (USDT).
TrueUSD (TUSD) kept its dollar peg, only rising slightly to $1.02, at the launch of official Binance trading. At one point, the asset spiked to $1.10, but quickly corrected its position. This time, the spike was much lower, while a few days ago the price of TUSD was distorted by bots to as high as $1.30.
TUSD volumes have risen to around $12 million in 24 hours. At the launch of Binance trading, the asset also saw its supply increase to more than 18 million tokens - a significant growth in the past months, given that TUSD launched with around 4 million tokens.
Because of its pairings, TUSD will not inject liquidity into many altcoin markets, the way USDT does now. TUSD will be instead a hedge against volatility. During market downturns, various tokens are sometimes used to store value if Bitcoin prices start sinking. It is possible that TUSD serves that function.
Binance Coin (BNB) is also used as a source of liquidity, but its fluctuating price complicates trading decisions. BNB is at $14.34, near its peak in BTC prices after the leading digital coin slid nearer to $8,000 again.
TUSD trading is yet to take off, and so far, daily volumes are lower than the total supply. As for Tethers, their share of crypto trading is stabilized at 15%, and the total supply is traded more than once every 24 hours.
TUSD tokens are only generated when users buy new ones with cash through the app - although sometimes, purchases are put in batches.
For now, the supply has only increased, and the team has foreseen the token being sent to other exchanges. Now that USDT minting has stopped, the new fixed-price token is a fiat on-ramp for buyers willing to get into crypto coins. An additional $12 million in trading is a drop in the bucket for Bitcoin, but in the future, TUSD may play its part in increasing liquidity and trading.