TrueFi’s TRU Token Rallies Over 200% After Binance’s TUSD Mint Sparks Speculation

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, the world's largest crypto exchange, minted $50 million of TrueUSD (TUSD) stablecoin, according to blockchain data. The event sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued Binance USD (BUSD).

Read more: BUSD Drama Sets Stage for Stablecoin Market Reshuffling

However, the speculation about the TRU token appears to be misplaced, as the issuers of the TrueUSD and TRU tokens were separated a while ago.

TrustToken sold TUSD in 2020 to a firm called Techteryx, according to an announcement by TrustToken chief executive Rafael Cosman at the time. The post said Techteryx is an "Asia-based conglomerate with the traditional real estate, entertainment, environmental, and information technology industries."

TrustToken also separated from the TrueFi protocol and was renamed Archblock last year, as TrueFi embarked on a road to decentralize the platform.

"Archblock is in the final stages of transferring all TrueFi IP and assets to the TrueFi Foundation, the TrueFi DAO’s legal entity," a TrueFi spokesperson told CoinDesk.

TRU surged as high as 14.6 cents from 4.4 cents on Binance before later paring some of the gains. The token was trading at around 11 cents at press time.

Earlier this week, Paxos said it would halt minting BUSD on the order of state regulator New York Department of Financial Services. Meanwhile, The U.S. Securities and Exchange Commission issued a Wells Notice to Paxos and reportedly was preparing a lawsuit for issuing unregistered securities.

BUSD is the third largest stablecoin with a $14 billion market capitalization in rapid decline, and was responsible for 35% of all trading volume on Binance, second largest after Tether’s USDT, according to data by crypto research firm Kaiko.

Read more: Binance USD's $16B Market Cap Up for Grabs as Paxos Regulatory Action Stirs Up Stablecoin Rivalry