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TrueFi (TRU) up 64%, Here's Why and What Binance Had to Do With It

Tue, 02/28/2023 - 16:00
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Gamza Khanzadaev
As TrueUSD gains traction amid Binance rumors, TRU soars at double-digit rate
TrueFi (TRU) up 64%, Here's Why and What Binance Had to Do With It
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The price of the TrueFi token, TRU, rose by more than 60% in today's trading session, while the crypto market continued to decline for the second week in a row. Impressive price action for the token occurred while TrueUSD (TUSD) became the fifth largest stablecoin, according to CoinMarketCap.

TRU to USD by CoinMarketCap

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It is highly likely that the explosion in the price of TRU, the governance token of TrueFi, the issuer of TUSD, is directly attributable to the latter's rapid ascent. Binance is rumored to be behind the active TUSD minting, having issued $130 million in the stablecoin in the past seven days.

According to speculation, having failed with Binance USD (BUSD), the black-and-yellow crypto giant began replacing withdrawn volumes specifically through TrueUSD. The largest TUSD inflows in 20 months were also noted by crypto analytics portal Santiment.

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In addition, it turned out that the fund of Peter Thiel, the billionaire founder of PayPal, among others, participated in investment rounds in TrueFi.

Stablecoin season

The regulatory war declared on the crypto market in the new year has generated a number of new narratives, particularly in the stablecoin sector. Along with TrueFi (TRU), the Liquity protocol token (LQT), which is listed on Binance today, also showed the strongest pump in price. It had seemed that after the failure of UST from Terra, there was no room for new stablecoins on the market, but things turned out otherwise.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.