TrueUSD cryptocurrency review: price, security, storing, fees
The USD Coin is one of the cryptocurrencies available on the XMLGold e-currency exchange platform, in this article you will learn more about this stable coin.
The Trust Token team released TrueUSD, a cryptocurrency backed by the US dollar. Tether USDT, the world's biggest stable coin, is now embroiled in various scandals, making this an exceptionally heated issue. Nevertheless, is TrueUSD a superior option to the current system? This TrueUSD review aims to address that question by providing you with all the facts you need. I'll also take a look at the benefits and drawbacks.
What is TrueUSD (TUSD)?
A new cryptocurrency called TrueUSD was established at the beginning of 2018. It was intended to be a stable coin that was easy to use, transparent, and dependable. As a result, no secret bank account or algorithm is used. The dollars that TrueUSD has on hand are spread among many distinct trust accounts. They have agreed to publicize the collateralized holdings every day and undertake monthly audits as part of the deal they signed. Multiple escrow accounts use to reduce counterparty risk and offer legal protection for token holders.
The purpose of TrueUSD was:
• Traders and Exchanges:
You may use TrueUSD as a kind of insurance against market volatility and as a way to trade without having to first purchase Bitcoin or Ethereum.
• Mainstream Commerce:
Every day consumers and companies don't have to worry about huge price swings while using blockchain technology.
• Developing Economies:
Use the stable currencies of rising economies for commercial transactions.
• Long-Term Financial Contracts:
Loans, wages, and other long-term financial arrangements.
• Financial Institutions:
Financial institutions may trade in the crypto markets using a trustworthy asset.
When was TrueUSD created?
TrueUSD was established at the beginning of 2018. Rafael Cosman, co-founder, and CEO of TrustToken developed the TrueUSD platform. Cosman has had a long-standing interest in cryptocurrencies, and most of his academic work has focused on artificial intelligence. Over the years, he's worked with many platforms, including Palantir, a software business, and Google.
A tiny subset of TrustToken's offerings, the TrueUSD platform allows users to create high-impact assets with little effort. An initial coin offering (ICO) had caused significant volatility in other currencies, which worried investors, but Cosman had discovered that auditing the stable coins consistently gave the firm a new direction and so calmed their nerves.
How does TrueUSD work?
The US dollars are held in escrow agreements signed by many trust businesses rather than in a single bank account managed by one company.
TrueUSD claims that the contents of the bank accounts are revealed and audited monthly. As a result, customers may have a high degree of confidence in TrueUSD since these collateralized assets are not held by a single corporation, but rather by many fiduciary partners.
To ensure that they are not held liable when issuing tokens, TrueUSD uses a technical framework. The USDT tokens, on the other hand, are created on the bitcoin blockchain using the Omni protocol.
Using the Ethereum blockchain, the tokens of TrueUSD may be issued using a sophisticated process. The KYC or AML check must pass before a person may purchase TrueUSD online. TrueUSD's trusted business partners will be able to receive USD after the transaction is completed.
For every $1 that is sent to an account connected to a trusted business, the TrueUSD smart contract is instructed to create tokens on a 1:1 basis and distribute them to that account's Ethereum addresses.
Tokens may be sent to friends or used to make purchases once they are in your wallet. A smart contract address that alerts the trust firm and indicates a bank transfer may also use to redeem TUSD tokens for actual US dollars.
This whole system assures that issuance takes occur in an environment that is decentralized and uses APIs and that the management of fiat money is superior to that of other options.
What are the benefits of TrueUSD?
People and businesses have several reasons to utilize TrueUSD (TUSD). Because of this, traders and investors may enter the cryptocurrency market without dealing with the market's volatility right away.
The TUSD provides a haven for those investors and traders who want to get out of the market before it becomes even more volatile.
There are FDIC-insured bank accounts in the United States that hold the equivalent of the amount of TUSD presently in circulation, making TUSD a stable currency.
The TUSD will become more valuable as the number of trading pairings and liquidity rises. Since any ERC-20-compliant personal wallet may use to store and withdraw TUSD, there is a small amount of third-party risk.
Is TUSD safe?
TUSD is generally regarded as one of the most secure stable coins on the market today. An incentive to retain TUSD is that it is a stable currency.
Three distinct security organizations have independently evaluated smart contracts, and none have identified or reported any vulnerabilities.
No one has direct access to the user monies that are being kept in reserve since all of the funds underpinning TUSD are held in escrow.
• Asset Insurance:
In the United States, holders of TUSD are legally protected against the theft of money and the accounts in which monies are maintained are FDIC guaranteed.
Every month, the accounting firm Cohen & Company conducts an audit. The business then publishes its findings online. TUSD's issued quantity is guaranteed to be fully collateralized by escrowed funds in this manner.
• Licensed and Regulated:
TUSD is the first U.S.-issued regulated stable coin, and TrustToken is fully permitted to operate in the country.
TrueUSD (TUSD) Vs Tether (USDT) Vs USD Coin (USDC) Comparison:
Only three stable coins, Tether, TrueUSD, and USD Coin, are in the top 50 most valuable cryptocurrencies on the market. Tether is the most valuable cryptocurrency by a wide margin, with a market cap of $1.7 billion.
With a market capitalization of just $160 million, TrueUSD is the closest competition. Furthermore, the freshly created USD Coin has around $140 million USDC tokens available for purchase.
A central authority maintains a trust account for all assets and creates digital tokens representing a 1:1 claim to those assets, which is the foundation of all cryptocurrencies.
Compared to the other two cryptocurrencies, Tether is the only one that is as transparent about its operations, disclosures of its holding companies, and accounts as well as regulatory compliance.
Stablecoins created on the Ethereum blockchain as ERC-20 tokens are more compatible with many software, hardware wallets, exchanges, and other Ethereum projects than older stable coins.
Most of USDT is issued on the Omni blockchain, although there are some ERC-20 tokens in there as well.
In terms of the number of users and transactions, Tether is well ahead of TrueUSD and USDC. Although the circulating quantity of Tether has decreased, TrueUSD and USD Coin have seen remarkable growth this year although
Tether has the most trading pairs available on the market. TrueUSD and USD Coin, on the other hand, are still in their infancy and are swiftly making up for the lost time.
Pros And Cons:
• Margin financing on exchanges, cryptocurrencies loans, an interest-bearing account deposits are all possible uses for TUSD.
• There is a 1:1 monetary link between the TUSD and the US dollar.
• The Federal Deposit Insurance Corporation (FDIC) insures bank accounts that hold US dollars that reflect TUSD.
• There are no costs associated with the purchase, transaction, or redemption of this product.
• Cryptocurrency marketplaces may be entered and exited instantaneously without any delays.
• In terms of transparency, TUSD is an excellent choice for investors.
• In comparison to the other stable coins, TUSD is still a long way behind.
• Stablecoins have a lot of competition.
TrueUSD (TUSD) is a contender for the best stable currency slot since it is open and helpful. Tether, which has a lengthy history of problematic behavior, is a strong rival because of its emphasis on compliance and openness.
TUSD has the potential to replace USDT as a viable option in the future.
The TrustToken team is using the Ethereum blockchain's proven security, wallet infrastructure, and smart contracts to help TUSD develop and prosper. As a result, TUSD was able to get off to a quicker start than it otherwise would have.