A little-known cryptocurrency has seen its price surge nearly 60% in a week after a massive crypto whale accumulated around $1.18 million worth of the cryptocurrency, whose current market capitalization is below the $100 million mark.
According to data from blockchain monitoring service Lookonchain, the cryptocurrency whale bought earlier this week 7.32 million TrueFi ($TRU) tokens worth approximately $500,000 on the leading cryptocurrency exchange Binance. Blockchain data shows it bought over 17.6 TRU tokens, worth over $1.18 million, over the past week.
TrueFi is a decentralized finance (DeFi) protocol that aims to provide uncollateralized loans to its users through a peer-to-peer mechanism. The platform assesses borrowers’ eligibility for loans through its in-house credit scores, thereby eliminating the need for a third party for credit disbursement.
Unlike traditional DeFi lending protocols that rely on over-collateralized lending, TrueFi provides predictable loans to borrowers while enabling lenders to enjoy an attractive rate of return. The platform’s long-term goal is to create an automated, market-driven credit rating and lending protocol, according to Coinbase.
TrueFi’s platform has several features, including an exit anytime feature that allows them to lend with no lock-in period, competitive returns on many assets, and default protection through TrueFi’s Secure Assets Funds for Users (SAFU) fund and the staking mechanism.
As a result of the whale’s accumulation, its price exploded by over 57% over the past week. The cryptocurrency is up over 133% over the last 30 days, and up over 258% since the beginning of the year.
Before the whale’s accumulation, some analysts believed that the price surge could be due to news that Binance has been minting hundreds of millions of dollars worth of the stablecoin TrueUSD (TUSD) after the New York Department of Financial Services (NYDFS) ordered Paxos to stop minting Binance’s BUSD token last month.
However, the TRU price spike may be the result of confusion, as TrueUSD no longer appears to be owned by Archblock, the company behind TruFi (formerly TrustToken). In 2020, Rafael Cosman, the co-founder of Archblock, announced that the ownership of TUSD was transferring to an Asia-based consortium that would collaborate with Tron to develop and grow the product, as Daily Hodl reports.
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