With TUSD being depegged for 3 weeks and Justin turning off proof-of-reserves the next FTD (fiat token derivative) fall out is just around the corner.

Are you ready for the next fall out?

TUSD has been trading sub par for several months. But in the last 3 weeks the situation dramatically worsened. Justin’s two CEX HTX and Poloniex are effectively insolvent – reserves are empty withdrawals in many cases (e.g. XMR) not possible at all.

The only thing they still try is attracting new deposits from unknowing investors to keep their scheme going for as long as possible.

Now let’s look at the potential contagion. Binance is the CEX that has the most liquidity in TUSD. We need a clear statement from them how they will handle a permanent depegg, not to speak of an escalation in the near term.

Like with CEX there are various risks involved when dealing with FTDs (fiat token derivatives) like TUSD, USDT or USDC. Do not store value in neither CEX nor FTDs.