• The TRU token surged over 200% after traders linked it to TUSD, a stablecoin previously issued by TrueFi but now no longer is.
• The rally was sparked by Binance minting $50 million of TrueUSD (TUSD) stablecoin.
• However, the speculation about the TRU token appears to be misplaced because the issuers of the TrueUSD and TRU tokens were separated a while ago.
TRU Token Rally
The TRU token, used on decentralized lending protocol TrueFi, recently rallied 220% in an hour due to speculation around Binance’s minting of $50 million of TrueUSD (TUSD) stablecoin.
Despite traders mistakenly connecting TRU with TUSD, which had been issued by TrueFi in the past but now no longer is, the speculation about the TRU token appears to be misplaced. This is because TrustToken sold TUSD in 2020 to a firm called Techteryx and also separated from the TrueFi protocol last year.
TrueFi DAO Legal Entity
TrueFi has embarked on a road to decentralize its platform and Archblock is in the final stages of transferring all TrueFi IP and assets to the TrueFi Foundation, which is the legal entity for its decentralized autonomous organization (DAO).
Binance USD Drama
The rally may have come from traders speculating that TUSD could gain a larger role in trading on Binance after regulatory crackdowns on Paxos-issued Binance USD (BUSD). Earlier this week, Paxos said it would halt minting BUSD on orders from New York financial regulators due to insufficient evidence that Binance had complied with state money transmission laws.
TRU Price Action
TRU surged as high as 14.6 cents from 4.4 cents on Binance before later paring some of its gains. At press time, it was trading at around 11 cents per coin.