The stablecoin market has experienced a downturn in recent times, from regulatory influence to bankruptcy of supporting firms like the collapse of the Silicon Valley Bank. Affected stablecoins include BUSD and USDC, but TrueUSD seems to have been rallying amidst the turmoil.
In an interview with Bloomberg, Justin Sun, Tron Founder and CEO mentioned that given the impact on USDC as a result of the collapse of the Silicon Valley Bank, big exchanges are starting to move their volume to TUSD. He added that they are doing so basically to diversify their stablecoin market share.
Additionally, he said that there are very limited options in the stablecoin markets today; probably we only have USDT, USDC, TUSD, and BUSD; “in the last three years, I think these are the only options we have in the markets..”
According to Sun, since BUSD received regulatory requirements to stop minting, its market stalled. So the choice became very limited only to USDT, TUSD, and USDC. “I think USDC is under heavy attack because of the bankruptcy of Silicon Valley Bank. At that time lots of people doubted if USDC had 100 percent in reserve so the stablecoin price fell a lot,” he said.
Moreso, Justin Sun said that he doesn’t take shares in TUSD nor is he particularly tied to TUSD parent firm Techteryx Ltd, rather he contributes to TUSD as well as USDT and USDC; basically all the stablecoin on the Tron network, he said.
“I think today if you check USDT and TUSD you will find out that there is more USDT and TUSD on Tron. And also of course we collaborated with Circle USDC but right now I think Tron still only occupies around 1 or 2 percent of the USDC markets,” Sun said.
Status of Justin Sun’s lawsuit
A case was filed by the Securities and Exchange Commission against the CEO alleging that he had driven public interest in TRX and BTT by engaging in “manipulative wash trading.” Sun in the interview revealed the legal team is still working on it and hopes to see more developments in the coming months.
Sun said he doesn’t have a particular opinion on what’s on the desk for him given the lawsuit and fines but he believes eventually it will be resolved, just a matter of time.
Looking at the Hong Kong crypto policy, he highlighted that Asian traders are beginning to gain confidence. “We have seen our business grow and the crypto price also recovering, all due to Hong Kong development,” Sun said.
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