Imagine a world where digital money mysteriously doubles in value. This is the story of TrueUSD, a special kind of digital money called a stablecoin. Stablecoins are like digital versions of real-world money, such as the US dollar, that help people trade safely in the world of cryptocurrencies.
What is making TrueUSD’s value skyrocket to $3 billion from just $1.5 billion in a few months?
Think of it as a magic trick in the cryptocurrency world. This stablecoin’s popularity has exploded. It’s now the fifth-largest stablecoin globally, according to CoinGecko. A year ago, it was a small player, and now it’s grabbing 20% of the trading action on major cryptocurrency websites – a huge jump from just a tiny fraction.
But here’s where things get interesting: No one seems to know who’s pulling the strings behind its rise. It all started with two smart people who created this stablecoin in 2018. They set it in motion under a company, which later turned into something else. Big names invested in this startup.
Now, this company handed over the rights to this stablecoin to another company. But the twist is that hardly anyone knows anything about this new company. All we’ve got is a small clue from one of the creators that it’s an Asian consortium involved in real estate, entertainment, and more.
Why is this a big deal?
Well, stablecoins are tied to real assets like government bonds, so it’s crucial to know who’s in charge. Regulators are keeping an eye on this because if everyone rushes to trade this stablecoin at once, it could cause a financial frenzy. There’s also the worry that some stablecoins might not be as reliable as they claim to be.
A person from a data provider says, “When we’re not sure who’s in charge of a stablecoin, it’s a big red flag.” Even though this stablecoin isn’t a giant in the crypto world, it’s used by millions of traders worldwide, making this uncertainty a big concern.
Now, let’s add a bit of drama. The creators of this stablecoin are locked in a legal battle. One of them says that a crypto big shot was trying to buy the stablecoin, and he got pushed out of the picture before the deal was sealed. This has sparked rumors that this person might be the mastermind behind the sudden success.
But here’s the twist: this person denies any connection to the stablecoin. He’s known for creating a blockchain company and leading a major crypto exchange. He’s also been in the news for legal trouble involving his cryptocurrencies.
The rise began with a move by the biggest crypto exchange. They stopped charging fees for trading the stablecoin, which made people rush to buy it for free bitcoin trading. This made the exchange control more than 90% of all this stablecoin in circulation.
Still, some wonder why the exchange is so interested. It’s known for its own stablecoin, and now it’s promoting this stablecoin instead. The exchange says they haven’t made secret deals with anyone to push the stablecoin. But it’s happening as the exchange deals with challenges from regulators and financial issues.
As the story continues, the exchange is also highlighting another lesser-known stablecoin from a company in Hong Kong. The exchange likes stablecoins that are open about their operations, follow regulations, and have strong banking ties in innovative markets.
In the world of cryptocurrencies, this mystery is a captivating tale of uncertainty, intrigue, and potential opportunity. Its journey shows us how the unpredictable mix of technology and finance can lead to surprising outcomes. As the crypto world evolves, this story reminds us that the future is full of surprises.