Recent market insights have revealed that on January 15, 2024, the stablecoin TUSD experienced a deviation from its usual $1 parity, dropping to $0.979 per coin the following day. However, by 10:00 a.m. Eastern Time (ET) on Tuesday, it managed to recover slightly, climbing above the $0.99 mark.
Fluctuations and Challenges
On Monday, TUSD faced fluctuations and slipped below its $1 benchmark. The value of the coin lingered around $0.98 that evening, which can be attributed to challenges associated with the company's real-time attestations. As of January 16, 2024, the circulating supply of TUSD, as displayed on their website, stands at 1.92 billion tokens.
A significant portion of TUSD's supply is held by Binance, which owns the top five ERC20 wallets. Out 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.
Instability and Social Media Debate
At 10:00 a.m. ET on Tuesday, TUSD briefly reached $0.996 per coin. However, by 10:20 a.m., it fell to around $0.987. This instability has sparked a significant debate on social media, with many questioning the reasons behind TUSD's fluctuating peg. It is worth noting that most of the trading activity for the coin is concentrated on Binance, with a significant portion of its volume originating from this exchange.
In the past 24 hours, TUSD's global trade volume reached $425 million. Despite a hefty supply of 1.92 billion TUSD, its market valuation on Tuesday was slightly lower at $1.89 billion. TUSD now joins the list of stablecoins that have faced parity issues, a trend that initially began with the collapse of the Terra blockchain ecosystem in May 2022.
We would love to hear your thoughts and opinions on the challenges TUSD has been facing in maintaining its $1 peg. Please share your insights in the comments section below.
Frequently Asked Questions
Should You Buy or Sell Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
These are some things you should consider when considering gold investing.
- Consider first whether you will need the money to save for retirement. It is possible to save enough money to retire without investing in gold. However, you can still save for retirement without putting your savings into gold.
- Second, be sure to understand your obligations before you purchase gold. Each type offers varying levels and levels of security.
- Don't forget that gold does not offer the same safety level as a bank accounts. If you lose your gold coins, you may never recover them.
So, if you're thinking about buying gold, make sure you do your research first. Protect your gold if you already have it.
Should You Invest in Gold for Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you are unsure of which option to invest in, consider both.
In addition to being a safe investment, gold also offers potential returns. Retirees will find it an attractive investment.
Gold is more volatile than most other investments. Because of this, gold's value can fluctuate over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold can be stored more easily than stocks and bonds. It is also easily portable.
You can always access your gold if it is stored in a secure place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when stocks fall.
Investing in gold has another advantage: you can sell it anytime you want. You can also liquidate your gold position at any time you need cash, just like stocks. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Also, don't buy too much at once. Start small, buying only a few ounces. You can add more as you need.
It's not about getting rich fast. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
What is the tax on gold in an IRA
The tax on the sale of gold is based on its fair market value when sold. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
You can use gold as collateral to secure loans. When you borrow against your assets, lenders try to find the highest return possible. In the case of gold, this usually means selling it. This is not always possible. They might keep it. Or they might decide to resell it themselves. Either way, you lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. If you don't plan to use it as collateral, it is better to let it be.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
External Links
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
bbb.org
How To
How to hold physical gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
An alternative option would be to buy physical gold itself. This means that you will need to open an account at a bank, bullion seller online, or purchase gold from a trusted seller. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It is also easier to check how much gold you have stored. A receipt will be sent to you indicating exactly how much you paid. This will allow you to see if there were any tax omissions. You're also less susceptible to theft than investing with stocks.
There are however some disadvantages. You won't be able to benefit from investment funds or interest rates offered by banks. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, the taxman may ask you about where you have put your gold.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Jamie Redman
Title: TUSD Faces Fluctuations, Drops Below $1
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
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