Market insights reveal that on Jan. 15, 2024, the stablecoin TUSD deviated from its usual $1 parity, dipping to $0.979 per coin the next day. By 10:00 a.m. Eastern Time (ET) on Tuesday, it managed to recover slightly, climbing above the $0.99 mark.
TUSD's Recent Fluctuations
Recently, TUSD experienced fluctuations, slipping below its $1 benchmark on Monday. That evening, its value lingered around $0.98, amid challenges linked to the company’s real-time attestations. As of Jan. 16, 2024, TUSD's circulating supply, as displayed on their website, stands at 1.92 billion tokens.
The Role of Binance
A significant portion of TUSD's supply is in the hands of Binance, which owns the top five ERC20 wallets. Of the total supply, only 391.99 million TUSD tokens are issued on the Ethereum blockchain, while 1.48 billion are on the Tron network. Binance's cold wallet holds approximately 1.4 billion of these tokens.
The Instability of TUSD
At 10:00 a.m. ET on Tuesday, TUSD temporarily reached $0.996 per coin. Yet, by 10:20 a.m., it fell to about $0.987. This instability has sparked considerable debate on social media, with many questioning the reasons behind TUSD's fluctuating peg. Most of the trading activity for the coin is concentrated on Binance, with a significant portion of its volume originating from this exchange.
The Global Trade Volume and Market Valuation
In the last 24 hours, TUSD's global trade volume hit $425 million. Despite a hefty supply of 1.92 billion TUSD, its market valuation on Tuesday was slightly lower, at $1.89 billion. TUSD is now among several stablecoins that have dealt with parity issues, a trend that began with the Terra blockchain ecosystem's collapse in May 2022.
What do you think about the issues TUSD has been facing dealing with holding its $1 peg? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Gold is money, not just paper currency or coinage. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
One reason is that gold has historically performed better than other assets during periods of financial panic. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold offers liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
How much of your portfolio should be in precious metals?
This question can only be answered if we first know what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is not affected by inflation or deflation.
The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors expect lower interest rates which makes bonds less appealing investments.
The opposite effect happens when the economy is strong. Investors favor safe assets like Treasury Bonds, and less precious metals. Because they are rare, they become more pricey and lose value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
How much are gold IRA fees?
An Individual Retirement Account (IRA) fee is $6 per month. This includes account maintenance and any investment costs.
If you want to diversify, you may be required to pay extra fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking, but charge monthly fees for IRAs.
In addition, most providers charge annual management fees. These fees range from 0% to 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's not exactly legal – WSJ
bbb.org
cftc.gov
irs.gov
How To
Tips for Investing in Gold
Investing in Gold has become a very popular investment strategy. There are many benefits to investing in gold. There are several ways to invest in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before you buy any type of gold, there are some things that you should think about.
- First, check to see if your country permits you to possess gold. If you have permission to possess gold in your country, you can then proceed. Or, you might consider buying gold overseas.
- Secondly, you should know what kind of gold coin you want. There are many options for gold coins: yellow, white, and rose.
- The third factor to consider is the price for gold. It is best to start small and work your way up. When purchasing gold, diversify your portfolio. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Lastly, you should never forget that gold prices change frequently. It is important to stay up-to-date with the latest trends.
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By: Jamie Redman
Title: The Fluctuations of TUSD: A Closer Look at the Challenges to its $1 Parity
Sourced From: news.bitcoin.com/tusds-stability-wavers-value-fluctuates-below-1-peg-amid-market-turbulence-and-binances-dominant-hold/
Published Date: Tue, 16 Jan 2024 17:30:04 +0000
Did you miss our previous article…
https://altcoinirareview.com/howard-lutnick-predicts-bitcoin-rally-and-affirms-confidence-in-tether-amidst-davos-appearance/
