• TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour.
• Speculation arose among crypto traders about TUSD potentially gaining a larger role in trading on Binance due to the regulatory crackdown on the Paxos-issued BUSD.
• However, this speculation appears to be misplaced because the issuers of the TrueUSD and TRU tokens were separated a while ago.
TRU Token Rallies Over 200% After Binance’s TUSD Mint Sparks Speculation
The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is. By Krisztian Sandor Feb 16, 2023 at 6:03 p.m. UTC Updated Feb 16, 2023 at 7:24 p.m. UTC
TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour, data by CoinMarketCap shows, in a speculative flurry over a Binance stablecoin transaction. Before the rally took off, Binance minted $50 million of TrueUSD (TUSD) stablecoin according to blockchain data which sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued BUSD.
Separation between TrueFi and TrustToken
However; this speculation appears to be misplaced because TrustToken sold TUSD in 2020 to Techteryx according CEO Rafael Cosman’s announcement and then separated from the TrueFi protocol last year as it embarked on its road to decentralization with all IP and assets transferred to The TrueFi Foundation legal entity owned by The DAO.
Rally and Paring Gains
TRU surged as high as 14.6 cents from 4.4 cents before later paring some of its gains and trading around 11 cents at press time according to CoinMarketCap data..
In conclusion; despite speculations arising around TUSB gaining more traction due to regulatory crackdowns against BUSB; it appears that investors have mistaken TRU for being related with TUSB which is not true as they are two different entities managed separately since 2020 with TrustToken separating itself from The DAO last year