- TrueUSD has surged to $3 billion in market capitalization since March of this year.
- Justin Sun is alleged as the person behind TrueUSD although Sun denies it.
- TrueUSD is used mainly for transactions in Binance, although why Binance makes it a big shot is unclear.
TrueUSD, a rapidly expanding stablecoin tied to real-world currencies, has experienced remarkable growth within the digital currency market. According to data sourced from the Wall Street Journal, TrueUSD’s market capitalization has surged beyond $3 billion since March, marking an impressive doubling in value.
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This achievement has propelled the cryptocurrency to secure the position of the fifth-largest stablecoin globally, as reported by CoinGecko.
From 1% to 20% of Stablecoin Market Share
At the outset of this year, the stablecoin accounted for less than 1% of stablecoin volume on centralized cryptocurrency exchanges. However, recent data from Kaiko, a leading provider of cryptocurrency market data, indicates that TrueUSD’s share has surged to 20% within the same period.
While TrueUSD’s ascent has been remarkable, a cloud of mystery surrounds its ownership. The founders of the stablecoin, Rafael Cosman and Daniel Jaiyong An, originally introduced it in March 2018 through their startup TrustLabs.
Subsequently, the company underwent a rebranding as Archblock and garnered financial support from notable investors like Peter Thiel’s Founders Fund, Andreessen Horowitz, and Jump Trading.
A noteworthy development occurred when Archblock sold the intellectual property rights of TrueUSD to Techteryx, a relatively unknown entity, in December 2020. Despite this transfer, Archblock remained responsible for managing the token, its reserves, and compliance until July. Surprisingly, there are lingering uncertainties about who is truly in control of TrueUSD.
Is Justin Sun the Owner?
Notably, blockchain entrepreneur Justin Sun, known for founding Tron, a prominent blockchain company, and leading crypto exchange Huobi, has denied any connection with TrueUSD and Techteryx.
Sun’s reputation has occasionally been marred by regulatory controversies, with the Securities and Exchange Commission filing a lawsuit against him and his companies in March for alleged violations of securities regulations.
The acquisition of TrueUSD by Techteryx occurred against the backdrop of the stablecoin’s rising prominence. Its recognition soared when Binance, the world’s largest cryptocurrency exchange, waived spot bitcoin trading fees for transactions involving TrueUSD.
Consequently, investors flocked to acquire the stablecoin, leading to a surge in demand. Presently, more than 90% of circulating TrueUSD tokens are controlled by Binance, based on insights from Arkham Intelligence.
In conclusion, TrueUSD’s exponential growth within the cryptocurrency market, coupled with its enigmatic ownership dynamics, underscores the evolving nature of the digital currency landscape. As the market continues to witness significant shifts, the true custodianship of this prominent stablecoin remains shrouded in mystery.
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