• TRU Token, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday.
• The rally appears to be from traders mistakenly connecting TRU with TUSD, a stablecoin issued by TrueFi in the past but no longer is.
• The speculation was sparked by Binance minting $50 million worth of TrueUSD (TUSD) stablecoin.
TRU Token Rallies Over 200%
The TRU token, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour, according to CoinMarketCap data. Traders appeared to be mistakenly connecting the TRU token with TUSD, a stablecoin that had been issued by TrueFi in the past but no longer is.
Binance Sparks Speculation
The speculation was sparked by Binance minting $50 million worth of TrueUSD (TUSD) stablecoin, according to blockchain data. This led traders to speculate about TUSD potentially gaining a larger role in trading on Binance after the regulatory crackdown on the Paxos-issued Binance USD (BUSD).
TrueFi and TrustToken Separated
However, this speculation about the TRU token appears to be misplaced because TrustToken sold TUSD last year and became known as Archblock. At the same time, TrueFi embarked on a road to decentralize its platform and separate from TrustToken/Archblock.
TRU Surges But Later Pares Gains
TRU surged as high as 14.6 cents from 4.4 cents on Binance before later paring some of the gains and trading at around 11 cents at press time. Meanwhile Paxos announced it would halt minting BUSD on orders due to regulatory uncertainties surrounding it operation.
Conclusion
In conclusion, while speculation over a potential role for TUSD trading may have sparked the rally in TRU tokens they were otherwise unrelated events since their issuers were already separated before this news broke out.