TrueUSD is one of the stablecoins that didn’t perform well this month of August.
The start of 2021 has been nothing quick of a breakthrough for cryptocurrency; the crypto globe has begun to create giant waves; with regulatory discussions, more institutional buy-ins from prominent institutions, and instabilities in costs.
As coins perform differently every day, investors must keep track of current crypto trends. Bitcoin, for example, peaked at $64,895.22 last April, to dip by 50% to about $32,601.00 in May.
Stablecoins are usually steadier, unlike your typical cryptocurrencies like Bitcoin and Ether. While distinct stablecoins relished all-time highs in August, some, unfortunately, provided negligible returns.
One of which is TrueUSD, with a -0.04% drop. TrueUSD is one of the stablecoin trying to retain its $1.00 worth. US dollars bonded by banks collateralize its supply; after being established to a bit of investor base in January 2018, TrueUSD has expanded to integrate nearly $400 million of backed tokens as of October 2020.
It is geared towards more prominent investors looking to reduce risk, just like other stablecoins. TUSD joined forces with Signature Bank to enable 24/7 real-time minting and redemption services in July, promising holders smoother transactions even when the market fluctuates.
Aside from TrueUSD, here are the other worst-performing stablecoins in 2021 so far.
The USD Coin is an Ethereum-based stablecoin founded in September 2018, tying stablecoin cryptocurrencies to fiat cash on the blockchain. Digital company Circle announced that the 1:1 actual dollar did not back the USD Coin in a bank account In July. Instead, it includes 60% of the USD Coin’s reserves and various debt securities and bonds back 40%. Modifications such as this can drastically impact coin volatility.
Likewise, the largest stablecoin with $75 billion in circulation disclosed that 2.9% of its funds were kept in cash earlier this year. Bringing stirred worry in investors as it is a state of unsecured, short-term obligation that can be riskier than government bonds, and a hasty group redemption of Tether tokens can destabilize the market. Further, China’s crackdown on crypto raised the need for contending stablecoins over Tether’s susceptibility. Nevertheless, the printing of Tether has resumed after an August hiatus of two months, and many expect USDT to revive soon.
A decentralized and algorithmic stablecoin on the Terra blockchain. It is a favorably yield-bearing coin and has achieved a reputation as the most scalable stablecoin. LUNA is a native token for Terra, and LUNA tokens are convertible to Terra stablecoins and vice versa. Fees can be relatively ignitable and apt to glitches for more recent cryptocurrencies like Terra.
In June and July, Central banks started to delist Binance, and In August, HSBC forbade UK consumers from making trades. Furthermore, Brian Brooks, Binance US CEO, quit after accepting the appointment. Binance was already mourning due to a hacking happening earlier this year, where $2.6 million robs from a client’s account. The pessimistic PR caused August an extremely fierce month for the currency.