In the quest for stability in the ever-fluctuating world of cryptocurrencies, the concept of “stablecoins” has emerged as a beacon of hope. Among the notable contenders in this race, TrueUSD (TUSD) stands out. Let’s dive in and see what TUSD and its counterparts bring to the table.
The TrueUSD (TUSD) Lowdown
TrueUSD is an ERC-20 token backed by the US dollar on a 1:1 ratio. What makes it different? It’s not just its transparency and legal protections. It also breaks from traditional models by distributing its US dollar holdings across several bank accounts owned by distinct trust companies.
Price volatility is a massive barrier for cryptocurrencies. The rapid ups and downs can make everyday transactions, international transfers, and using crypto as a regular payment method a bit daunting. This is where stablecoins like TrueUSD come in.
Decoding Stablecoins
The idea behind stablecoins is straightforward: tie a cryptocurrency’s value to a less volatile asset. This might be gold, oil, or more commonly, fiat currencies like the USD. In doing so, stablecoins aim to offer the best of both worlds: the convenience and innovation of digital currencies without the extreme price swings.
One of the more well-known stablecoins is Tether (USDT). For every USDT token issued, there’s an equivalent US dollar amount placed into a scrutinized bank account. It’s been a trusted player since 2014, but recent controversies have caused trust issues among its users.
This upheaval has paved the way for next-gen stablecoins like TrueUSD, striving for better standards and clearer transparency.
Breaking Down TrueUSD
TrueUSD made its entrance in 2018, marketing itself as a reliable, transparent, and easy-to-understand stablecoin. It separates itself from others by ensuring its US dollar holdings are published daily and undergo monthly audits. This isn’t just about trust; it’s about providing legal protection against potential theft.
TrueUSD in a nutshell:
- It’s excellent for traders, exchanges, mainstream commerce, and developing economies.
- Financial institutions can use it as a trustworthy asset in the crypto market.
- TrueUSD’s framework allows for a direct exchange of USD with escrow accounts.
- There’s a commitment to regular attestations, published openly.
Enter TrustToken
TrustToken is the powerhouse platform behind TrueUSD. Packed with experts from places like Google, Standford, and UC Berkeley, its goal is to tokenize a plethora of assets – think everything from patents to rental properties.
This platform goes beyond just asset tokenization. It hints at fractional ownership, which could change how we view ownership and trading of tokenized assets.
Mechanics of TrueUSD
The brilliance behind TrueUSD lies in third-party escrow accounts. Users who clear the required KYC and AML checks can purchase or redeem TrueUSD through a specific application. This setup ensures a continuous 1:1 USD to TUSD ratio, guaranteeing stability.
For those looking to convert TUSD back to fiat, it’s a seamless process. You send the tokens back, notify the trust company, and get a fiat transfer back to your account.
Benefits of TUSD tokens:
- Strong legal protections and frequent attestations.
- Trustworthy fund management.
- The ability to redeem TUSD for USD.
- Transparent collateral for every TUSD token.
The Stablecoin Showdown
When you compare TUSD, Tether (USDT), and USD Coin (USDC), you notice that all function on a similar principle. A centralized entity holds assets and issues equivalent tokens. However, TUSD and USDC shine brighter because of their commitment to transparency.
Acquiring TrueUSD (TUSD) Tokens
- Via exchanges: Binance, HitBTC, Bittrex, etc.
- Through the TrueUSD app (after passing KYC/AML).
- Using instant exchanges like ShapeShift or Changelly.
Storing TUSD Tokens
Being an ERC-20 token, you can store TUSD in any compatible wallet like MyEtherWallet, MetaMask, or Jaxx.
State of Affairs
TrueUSD continues to grow and uphold its operations to high standards. With plans to launch assets like TrueEuro and TrueGold and tokenized goods like real estate, the future looks promising.
