Guides to Cryptocurrencies
Launch Date: 1st March 2018
TrueUSD (TUSD) is an exchange-independent stablecoin cryptocurrency developed and launched in March 2018 by TrustToken, a company located at San Francisco. It is an Ethereum blockchain based ERC-20 token reported to be pegged 1 to 1 with US dollars, meaning every 1 TrueUSD coin token is worth $1 USD.
TrueUSD is collateralized with USD fiat currencies, held in multiple escrow accounts to reduce counterparty risk and its website committed that users can always redeem 1 TUSD for 1 USD. TrustToken releases monthly reports of its bank account holdings to the public and informed that TUSD is subjected to ongoing audits by Cohen & Company, a group with cryptocurrency expertise and is a top 50 public accounting firm. The job of the auditing firm is to verify that the assets stored in escrow sufficiently collateralize all TrueUSD coins that have been created and distributed.
Objective of Stablecoin
Cryptocurrency prices are highly volatile and can move aggressively up or down daily. This is a big concern for consumers and businesses with the risk of depositing/receiving cryptocurrencies onto their wallet for shopping/sales only to find out that their coins have dropped 20% in value the next day. On the other hand, a stablecoin that is collateralized and redeemable 1 to 1 with USD will have consistent value and can be kept short or long term for savings or for transactions, for example, buying coffee or paying insurance annually.
When TrueUSD was launched on 1st March 2018, $4.8 million USD worth of TUSD was held in escrow. Around 1 year later as of 18 July 2019, TrueUSD had the 36th largest cryptocurrency market cap of more than $223 million USD with the same amount of total coin circulating supply of around 223 million. TUSD cryptocurrency is available for trading on Binance, Bittrex, Huobi, OKEx, HitBTC, UpBit and Cryptopia cryptocurrency exchange.
TUSD vs Tether USDT
Tether USDT is the world’s largest stablecoin by cryptocurrency market cap and is very popular globally. This brings us to a comparison analysis on how do USDT and TUSD stack up against each other?
1. TrueUSD is an ERC-20 standard token that can be kept on an Ethereum wallet. USDT was issued on the Bitcoin blockchain through the Omni Layer protocol and is not part of ERC-20.
2. Investors need to complete a mandatory KYC/AML before they can be issued new TUSD tokens. This is more transparent than USDT that reportedly does not require KYC for the same request.
3. As reported on Forbes News, New York Attorney General’s office announced on May 2019 that Bitfinex (Tether’s parent company) used collateral funds from Tether to cover up $850 million in losses. On the same week, Tether’s lawyer acknowledged in an affidavit that USDT is only 74% backed by fiat equivalents. TUSD on the other hand has no such controversial news and is reportedly subjected to ongoing audits to confirm all TUSD is 100% collateralized.
4. Tether was the first cryptocurrency stablecoin to be launched and has the world’s 7th largest cryptocurrency market cap of $4 billion USD as of 19 July 2019 while TUSD is at 38th largest with $207 million USD at around 1.5 years old.
Official TrueUSD links from the TrustToken Website
Other Stablecoin Projects
On a separate note, TrustToken is reported to be planning other new stablecoin projects, for example, TrueEuro, TrueYen and stable tokenized goods including real estate and precious metals.