TRON Founder Justin Sun Raises Concerns with $865 Million TUSD Minting
TRON Founder Justin Sun sparks concerns in the crypto industry after minting $865 million worth of TUSD despite limited adoption. Questions arise about the stability and collateralization of TUSD and the source of yield for stUSDT.
Posted 10 months ago in Blockchain
Justin Sun, the founder of TRON, has raised eyebrows in the crypto industry after minting $815 million worth of TrueUSD (TUSD). Despite limited adoption of the stablecoin, Sun carried out 10 transactions to mint the TUSD on September 15. The newly created stablecoins were initially transferred to a Huobi hot wallet address and later burned. In return, Sun generated $865 million worth of stUSDT tokens, which he placed into the TRON-based DeFi platform, JustLend. The recent activity has sparked concerns about the stability and collateralization of TUSD.
Questions have been raised about the reserves backing TUSD and the source of yield for stUSDT. Sun has indicated that treasury bills serve as the underlying assets providing collateral. However, he did not provide specific details about the types of treasury bills involved. TUSD's market share on Binance has significantly declined, and there are concerns about the rapid expansion of projects like stUSDT. Many stUSDT holdings can be traced back to Sun's personal wallet. It's important to note that Sun is currently facing civil charges related to fraud and securities law violations in the United States.
Despite these developments, Sun denies any wrongdoing and emphasizes that his projects are operating legitimately. The crypto community remains cautious and continues to monitor the situation closely.
Last updated 9/16/2023, 4:42:21 PM
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