TrueFi’s TRU Token Rallies 200% After Binance’s TUSD Mint Sparks Speculation

•TRU, the governance token of decentralized lending protocol TrueFi, surged 220% on Thursday in an hour due to speculation over a Binance stablecoin transaction.
•The rally appears to come from traders mistakenly connecting TRU with TUSD, a stablecoin that had been issued by TrueFi in the past but now no longer is.
•TrustToken sold TUSD in 2020 to a firm called Techteryx and separated from the TrueFi protocol and was renamed Archblock last year.

TrueFi’s TRU Token Rallies Over 200%

The TRU token of decentralized lending protocol TrueFi rallied over 200% on Thursday in an hour, data by CoinMarketCap shows, after speculation about a Binance stablecoin transaction sparked among crypto traders.

Binance Mints $50 Million of TrueUSD

Prior to the rally, Binance had minted $50 million of its own version of TrueUSD (TUSD) stablecoin, according to blockchain data. This caused some confusion among traders as they thought it might be related to the TRU token.

TrueFI Issuers Separated Long Ago

However, the speculation about the TRU token was misplaced because the issuers of the TrueUSD and TRU tokens were separated a while ago. TrustToken sold TUSD in 2020 to a firm called Techteryx and was later renamed Archblock last year as TrueFi embarked on its journey towards decentralization.

TRU Surge Triggered By Misinformation

The misinformation led to many traders investing in TRU which triggered its surge 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.

BUSD Drama Sets Stage for Stablecoin Market Reshuffling

The drama surrounding Paxos’ decision to halt minting BUSD set stage for reshuffling within the stablecoin market which could have been misinterpreted by traders who then made investments based on incorrect information leading them towards buying TRU instead of TUSD tokens