• TrueFi’s TRU token saw an enormous near 100% price spike on Thursday.
• The crypto token was last changing hands around $0.083, down a little over 5.0% on Friday amid further profit-taking.
• Traders seem to have taken the mistaken view that this would be beneficial for the TrueFi protocol, but it is likely that TRU would then recommence its uptrend if investors look for cryptocurrencies with better risk-reward for strong performance in 2023.
TrueFi Price Prediction
The Ethereum-based ERC-20 token that powers decentralized finance protocol, TrueFi (TRU), saw an enormous near 100% price spike on Thursday. Despite profit taking and a little over 5.0% dip on Friday, TRU had still increased by more than 80% since Wednesday’s close, spiking above its 200DMA just under $0.05.
Cause of Spike
This spike appears to have been triggered by speculation as a result of Binance minting $50 million in TrueUSD (TUSD). This has caused traders to believe that TUSD will have a larger role within Binance’s platform due to US regulatory crackdowns on Paxos, issuer of BUSD. It should be noted however, that TrueFi does not issue TUSD anymore; Techteryx does since 2020 instead.
Price Prediction
As traders start to realize their mistake concerning the connection between TrueFI and TUSD, they might start dumping TRU back onto the market resulting in an aggressive pullback to sub-$0.0550 levels and retesting of the 200DMA just below $0.05 is possible; however if investors are looking for cryptocurrencies that might have better risk-reward for strong performance in 2023 then presales currently taking place may be beneficial instead.
True Fi Protocol
TRU can be used within the TrueFi protocol for staking and governance purposes as well as uncollateralized lending using on-chain credit scores which will add further value to its price performance over time when compared with other cryptocurrencies without similar use cases or utility value attached to them such as Bitcoin or Ethereum .
Conclusion
Although there is upside risk associated with TRU after its recent surge in price due to false speculation regarding a connection between TrueFI and TUSD, there is also potential for long term gains through investment into presales currently taking place alongside further development within the Trufi Platform itself which will give it further utility and added value when compared with other cryptocurrencies without similar use cases or utility value attached to them such as Bitcoin or Ethereum .
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