• The TRU token, the governance token of decentralized lending protocol TrueFi, surged 220% in an hour on Thursday.
• The rally appears to be from traders mistakenly connecting it with TUSD, a stablecoin that had been issued by TrueFi in the past but no longer is.
• Binance minted $50 million of TrueUSD (TUSD) stablecoin, sparking speculation among traders about TUSD potentially gaining a larger role in trading on Binance.
TRU Token Rallies Over 200%
The TRU token, the governance token of decentralized lending protocol TrueFi, surged 220% in an hour on Thursday. This rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but no longer is.
Binance’s TUSD Mint Sparks Speculation
Binance, the world’s largest crypto exchange by volume, minted $50 million of TrueUSD (TUSD) stablecoin earlier this week which 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).
TrustToken and TrueFi Separation
TrustToken sold TUSD in 2020 to a firm called Techteryx which is an Asia-based conglomerate with businesses … in 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.
TRU Surge
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.
Conclusion
In conclusion, it appears that speculation surrounding TRU rallying over 200% came from traders mistakenly connecting it with TUSD; however since TrustToken separated from Truefi last year this speculation appears to have been misplaced due to them being two different entities now. Despite this TRU still saw impressive gains before paring back some losses at press time