• TrueFi’s TRU token rallied over 200% after Binance minted $50 million of TrueUSD (TUSD) stablecoin.
• The speculation about the TRU token appears to be misplaced because TrustToken sold TUSD in 2020 to a Techteryx and separated from the TrueFi protocol last year.
• The token was trading at around 11 cents at press time.
The rally of TrueFi’s TRU token surged 220% on Thursday in an hour, data by CoinMarketCap shows, sparked by traders mistakenly connecting it with TUSD, a stablecoin issued by TrueFi in the past that is now no longer associated with them.
TrustToken sold TUSD in 2020 to a firm called Techteryx, according to an announcement by TrustToken Chief Executive Rafael Cosman at the time. TrustToken also separated from the TrueFi protocol and was renamed Archblock last year, as TrueFi embarked on a road to decentralize the platform.
Before the rally took off, Binance minted $50 million of TrueUSD (TUSD) stablecoin, according to blockchain data. This event sparked speculation among crypto traders about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on Paxos-issued Binance USD (BUSD).
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 orders from U.S regulators due to an ongoing investigation into its Bitfinex exchange for alleged money laundering activities related to its involvement with Tether’s USDT token..
The speculation about the connection between TRU and TUSD appears baseless since they are no longer connected since their separation last year when TrustToken was rebranded as Archblock and moved away from its association with TrueFI protocol