- Tron price dipped by 3% to trade at $0.1042, erasing part of last week’s 13% rally.
- Justin Sun addressed the Reuters report of Tron exceeding Binance in terrorist financing, saying the top priority remains to maintain decentralization.
- TrueUSD (TUSD), a lesser-known stablecoin, depegged after gaining recognition thanks to Sun’s recent $800 million minting stint.
Tron founder Justin Sun has maintained a significant influence on the crypto market and certain tokens that he has been associated with in some way or another. Thus, as and when his crowned exchange was reported for being the home to illicit funding, TUSD depegged, TRX fell, and Sun did not take too long to address the situation.
Justin Sun defends Tron
Tron was reported to be the blockchain with the highest-noted terrorist financing, exceeding even Bitcoin. The report by Reuters sparked concerns among users and investors, given the recent indictment of Binance CEO Changpeng Zhao. The skepticism did not take long to reach the assets associated with Sun, and consequently, TUSD depegged.
TUSD, also known as TrueUSD, is among the lesser-known stablecoins until a few weeks ago. The asset came into the spotlight in September when Justin Sun made headlines for minting more than $815 million worth of TUSD.
The humungous mint was the result of Sun moving his funds, and the TUSD soon landed in the Tron-based lending protocol, JustLend. Owned by Sun, it received widespread coverage. Today, following the terrorist financing concerns raised by Reuters against Tron, the stablecoin destabilized and lost its peg by a tad margin.
TUSD could be seen trading at $0.9972 against its natural value of $1. While this is not the first time or the biggest depeg in the stablecoin’s history, as just two weeks ago, TUSD dropped to $0.9908, it is a good example of Sun’s influence.
TUSD/USD 1-hour chart
Soon after, Justin Sun himself took to X, formerly Twitter, to address the concerns surrounding terrorist financing, saying,
“Global super representatives are responsible for running this protocol. While we are committed to combating terrorist financing by integrating various analysis projects and partners, our top priority remains maintaining decentralization, ensuring the safety of everyone’s assets, and providing instant, affordable, and reliable transactions, as has always been the case.
This was Sun’s attempt at damage control, but it did not pan out as expected.
Tron price dips further
Tron price is trading at $0.1025, down by more than 6.1% in the last 48 hours. The fall came merely a few hours after TRX observed a 13.57% rally in the past week to close in on the $0.1100 mark.
Looking at the Moving Average Convergence Divergence (MACD), the appearance of the red bar on the histogram confirms that the altcoin is now more susceptible to a bearish momentum. This could lead to Tron price seeing the lows of at least $0.1000 or $0.0950.
TRX/USD 1-day chart
But given that the entire issue is not as significant as Binance’s fiasco, the altcoin might be able to prevent a massive drawdown. Instead, it could eventually reclaim the losses witnessed in the past day and recover to $0.1075, and this would invalidate the bearish thesis as well.