Key Points
- Binance is set to stop trading for several stablecoin spot trading pairs, including those associated with TrueUSD (TUSD).
- The cessation of trading, which follows Binance’s routine assessment of trading pairs, is scheduled for March 15, 2024.
Binance has revealed plans to terminate trading for various stablecoin spot trading pairs linked to the stablecoin TrueUSD (TUSD).
The pairs include COMP/TUSD, EDU/TUSD, and PENDLE/TUSD. This move is a result of Binance’s regular review of trading pairs, with the aim of preserving the quality of the market by evaluating factors such as liquidity and trading volume.
Trading Halt and Impact
The modifications are slated for March 15, 2024, at 03:00 UTC. Not only will these pairs be affected, but others such as ARPA/BNB and EDU/BNB will also be impacted. Despite the delisting, Binance has assured that the base and quote assets of these pairs will continue to be available through other trading options on the platform.
Simultaneously with the trading halt, Binance will also discontinue Spot Trading Bots services for these pairs.
TrueUSD’s Market Performance
This decision comes shortly after TUSD’s deviation from its peg to the US dollar earlier this year. An imbalance in TUSD trading on Binance was noted on January 15, 2024, with sell orders exceeding buy orders by over $142 million. This discrepancy led to TUSD’s value dropping to as low as $0.984.
Concerns about TrueUSD’s operations arose on January 10, with issues reported about the real-time attestation of its reserves. Failures in its API were identified, hampering the provision of a US dollar valuation for its collateral assets.
However, the TrueUSD team attributed the depegging event to specific activities on Binance Launchpool. They pointed out that recent mining activities created short-term arbitrage opportunities, which they considered normal aspects of market dynamics and liquidity adjustments.
Despite this, a research report revealed that TUSD was no longer used for mining activities on Binance Launchpool, marking a significant change in the stablecoin’s engagement with the platform. The report suggested that this was a primary reason for the devaluation of the Stablecoin.
