TrueUSD Struggles to Maintain $1 Peg
TrueUSD (TUSD), currently the fifth-largest stablecoin in terms of market capitalization, has been facing difficulties in maintaining its peg to the U.S. dollar since January 15, 2024. On January 17, the value of TUSD dropped to $0.9709 per unit. Although it briefly recovered to the $0.99 mark the following day, as of January 25 at 10:30 a.m. ET, TUSD was trading between $0.979 and $0.981.
This fluctuation in trading value has a significant impact on TUSD's market valuation, especially considering its circulating supply of 1.864 billion tokens, which brings its market capitalization to approximately $1.829 billion. In the last 24 hours, TUSD has witnessed a global trade volume of $60.55 million. Binance, one of the leading cryptocurrency exchanges, emerges as the most active trading platform for TUSD, holding the majority of its Tron and Ethereum supplies, as indicated by wallet statistics.
GHO Achieves Milestone as It Approaches the $0.99 Mark
In contrast to TUSD's struggles, GHO, the stablecoin developed by Avara (formerly Aave), has achieved a significant milestone by reaching the $0.99 range on January 25. Since its launch in July 2023, GHO has consistently traded below its target peg. However, the Avara team has implemented various strategies to enhance its value. On October 24, 2023, the value of GHO dropped to a low of $0.917 per unit. However, by early December 2023, it had surpassed the $0.98 mark.
Fast forward to Thursday, January 25, 2024, and GHO reached its highest point above the $0.99 range since its inception. Notably, the stablecoin peaked at $0.994 before briefly dropping to $0.989. Since 9:40 a.m. ET, GHO has consistently remained above the $0.989 level. Reflecting this upward trend, the decentralized exchange (dex) Curve Finance recorded GHO trading at 0.9965 per unit as of 11:25 a.m. ET.
What are your thoughts on TUSD's challenges with maintaining its peg? How do you feel about GHO surpassing the $0.99 range on Thursday? Share your opinions in the comments below.
Frequently Asked Questions
How to Open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. To open the account, complete Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should be filled within 60 calendar days of opening the account. After this, you are ready to start investing. You could also opt to make a contribution directly from your paycheck by using payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, the process is identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made on a regular basis. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. You can only purchase bullion in physical form. This means you won't be allowed to trade shares of stock or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option is offered by some IRA providers.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose money over time and not gain it.
Can the government steal your gold?
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It belongs to your. But, this rule is not universal. You could lose your gold if convicted of fraud against a federal government agency. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.
What is the benefit of a gold IRA?
A gold IRA has many benefits. It can be used to diversify portfolios and is an investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best part is that you don't need special skills to invest in gold IRAs. These IRAs are available at all banks and brokerage houses. You don't have to worry about penalties or fees when withdrawing money.
There are, however, some drawbacks. Gold has historically been volatile. Understanding why you invest in gold is crucial. Are you looking for safety or growth? Are you trying to find safety or growth? Only by knowing the answer, you will be able to make an informed choice.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce won't be enough to meet all your needs. Depending on your plans for using your gold, you may need multiple ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even a single ounce can suffice. You won't be capable of buying anything else with these funds.
How is gold taxed by Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules governing these accounts vary by state. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to wait until April 1. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, plan ahead so you can take distributions at the right time.
Is buying gold a good option for retirement planning?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion bar is the best way to invest in precious metals. There are many ways to invest your gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. Owning gold stocks should work well if you need cash flow from your investment.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
How much gold should you have in your portfolio?
The amount of money you need to make depends on how much capital you are looking for. If you want to start small, then $5k-$10k would be great. As you grow, it is possible to rent desks or office space. You don't need to worry about paying rent every month. It's only one monthly payment.
Consider what type of business your company will be running. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You might get paid only once every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I recommend starting with $1k-$2k in gold and working my way up.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
finance.yahoo.com
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
irs.gov
How To
Online buying gold and silver is the best way to purchase it.
First, understand the basics of gold. The precious metal gold is similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They aren't circulated in any currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. For every dollar spent, the buyer gets 1 gram of Gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are a few options if you wish to buy gold directly from a dealer. You can start by visiting your local coin shop. Another option is to go through a reputable site like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. A private seller will usually return less money than a coin shop and eBay. This option is often a great choice for investing gold as it allows you more control over its price.
You can also invest in gold physical. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
A bank or pawnshop can help you buy gold. A bank can offer you a loan for the amount that you need to buy gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks tend to charge higher interest rates, while pawnshops are typically lower.
A third way to buy gold? Simply ask someone else! Selling gold is easy too. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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By: Jamie Redman
Title: The Challenges Faced by TrueUSD as GHO Climbs Near the $0.99 Mark
Sourced From: news.bitcoin.com/stablecoin-tusd-remains-below-intended-1-peg-as-avaras-gho-surges-to-near-peg-heights/
Published Date: Thu, 25 Jan 2024 18:30:31 +0000
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