TrueUSD is a fiat-collateralized stablecoin issued by the TrustToken platform that keeps USD funds in third-party escrow accounts without direct access by TrustToken. TrueUSD is an ERC-20 token issued on Ethereum and corresponds on a 1:1 basis with US Dollars sitting in bank accounts.
What is TrueUSD (TUSD)?
One of the main barriers to the widespread adoption of cryptocurrencies is price volatility. It is challenging to use cryptocurrencies for regular transactions, international transfers, and as a commonly recognized payment gateway due to the market’s extreme volatility.
Some cryptocurrency firms, on the other hand, take it seriously and strive for a more seamless connection between blockchain technology with the present financial paradigm. They create so-called stablecoins, with TrueUSD being one of these projects.
Background of TrueUSD
Trust Token chose to develop a stablecoin named TrueUSD in response to concerns about whether Tether was completely backed and had trustworthy financial links (TUSD). Midway through 2018, the Trust Token platform introduced TrueUSD, a fully collateralized stablecoin backed by U.S. dollars, as part of its ongoing endeavor to tokenize real-world assets on their collateralized platform.
A smart contract on the Trust Token platform was used to launch and distribute each TUSD token, which is backed by one dollar. Banks and registered fiduciaries that hold the assets used to back TUSD tokens are partners of Trust Token.
TrueUSD was the first stablecoin to offer real-time audits in December 2019.
How Does TrueUSD Work?
Third-party escrow accounts are essential for any TrustToken tokenized asset to operate correctly. Anyone who meets the KYC and AML standards can use their app to buy or redeem TrueUSD.
Smart contracts that have been openly audited are used by TrustToken to prevent token issuance. The TrustToken staff never even touches the money. When USD is deposited into an escrow account, new TUSD are automatically created. When a user redeems USD, the corresponding quantity of TUSD is immediately burnt. Thus, TrustToken guarantees a 1:1 USD to TUSD ratio between the funds held in escrow accounts and the TUSD in use.
When a user completes KYC/AML, they can transmit USD to one of TrueUSD’s trust partners directly (along with the Ethereum wallet address). The API communicates with TrueUSD’s smart contract after the escrow business has verified the funds, and the smart contract then issues tokens at a 1:1 ratio and delivers them to the supplied wallet.
The tokens can be used for anything once they are in your wallet. The safety and confidence of fiat currency and the low fees, short transfer times, and global reach of cryptocurrencies are combined in TrueUSD tokens to provide the best of both worlds.
The process is reversed if you want to convert TUSD back to US dollars. When the user returns TUSD tokens to the smart contract address, the trust firm is notified and a fiat transfer is then initiated back to the user’s account.
A system like this makes controlling the token supply simple and effective, outperforming the previous options. It uses numerous APIs.
The cost to buy and redeem TrueUSD at the moment is $75 or 0.1%. It costs 0.1% to send TrueUSD between Ethereum wallets.
What Problems Does TrueUSD Solve?
With regular attestations providing security, TrueUSD seeks to strike a balance between stability and utility, which are any stablecoin’s primary use cases.
Since the stablecoin’s introduction, parent company TrustToken has made an effort to emphasize how crucial independent provenance verification is. As a result, the stablecoin appeals to both smaller private traders and larger investors wishing to lower risk.
The TrueUSD Team
TrueUSD is a stablecoin that was made by Rafael Cosman, who is the co-founder and CEO of TrueUSD’s parent company, TrustToken. Cosman has always been interested in cryptography. Before working at both Google Brain and the software company Palantir, he studied cryptography and artificial intelligence (AI). In 2017, he left Google to start TrustToken. Cosman has said that TrueUSD was always just the beginning of TrustToken’s line of products and that it didn’t take much work to make a high-impact asset.
At the time of launch, he said that regular audits of the stablecoin were a big focus for the company. This gave investors peace of mind at a time when many crypto assets were very volatile because of the initial coin offering (ICO) trend.
Partnerships
TUSD is live on EthereumChain, TronChain, BinanceSmartChain, BinanceChain, and AvaChain. It is also available on over 70 exchanges around the world. A stable-coin ecosystem that changes over time.
TrueUSD can be used on more than 30 DeFi platforms in different blockchains.
What Is TUSD Token?
TrueUSD (TUSD) is a new stablecoin (a cryptocurrency with little price volatility) similar to Tether (USDT) created on the Trust Token platform (a platform that helps connect blockchain with real assets) which helps you to convert 1 TUSD to 1 USD.
TrueUSD is the only exchangeable cryptocurrency that provides credit card holders with complete information on USD mortgages, certifications, and legal protections to exchange TUSD for USD. Given its status as a stablecoin, the supply is uncapped and will continue to expand according to demand. TrueUSD’s equivalent redeemability for USD is maintained via partnerships with banks and fiduciary entities.
Basic Information About TUSD:
- Token name: TrueUSD
- Ticker: TUSD
- Blockchain: Ethereum
- Token Standard: ERC-20
- Contract: 0x0000000000085d4780B73119b644AE5ecd22b376
- Total supply:1,227,899,014
- Circulating Supply: 1.23 B TUSD.
- Market Capitalization: 1.226.322.913 TUSD coins
- Circulating Supply: 1.23 B TUSD.
How Is TrueUSD Backed?
Each TUSD token is backed by one dollar and was launched and distributed via a Trust Token platform smart contract. Trust Token has partnered with registered fiduciaries and banks that hold the assets backing the TUSD tokens
Types Of TUSD On Blockchains:
TUSD is a type of digital currency that is used to purchase goods and services on a blockchain. There are 3 types of TUSD: ERC20 TUSD, ERC223 TUSD and TUSDB.
- ERC20 TUSD is the most common type of TUSD and is used to purchase goods and services on the Ethereum blockchain.
- ERC223 TUSD is a newer type of TUSD that is used to purchase goods and services on the EOS blockchain.
- TUSDB, a BEP-2 token on the Binance Chain.
How to Buy TrueUSD?
Up to now, there are many exchanges that allow the trading of TUSD like many other coins. The way to trade TUSD is no different. Depending on the exchange, you may be able to register an account to trade this stablecoin. Some exchanges have TrueUSD currency pairs such as Binance, OKEx, Bittrex, Upbit, and HitBTC,…
Read more: Coinbase vs Binance: Which Crypto Exchange is Best?
How to Store TUSD Coins?
Currently, TUSD is an ERC20 standard token, so the electronic wallet used to store them must comply with the ERC20 standard and the popular wallets today are Trust Wallet MyEtherWallet, Trezor, and Ledger Nano S, ImToken or Metamask.
If you are a regular trader, you can store TUSD coins directly on the e-wallets of the exchanges. If you are a long-term investor and do not need to trade often, you should use the separate wallets that we have suggested for you above.
Read more: TOP 10 Best ERC20 Coins To Trade & HODL In 2023: A Full Guidance Of Potential Crypto For Traders
What Are The Risks Involving In TUSD?
It is quite safe to hold TUSD in your wallet and wait for the right moment to make an investment with other altcoins. Because it is a 1:1 guaranteed stablecoin in USD, the price of TrueUSD today only fluctuates around the 1 dollar mark.
What If TUSD Collapses?
If TUSD coin were to collapse, it would have a major impact on the economy. TUSD is a stablecoin that is pegged to the US dollar, so if it were to collapse, it would mean that the US dollar would no longer be worth anything. This would have a ripple effect on the global economy, as the US dollar is the world reserve currency. All of the world’s currencies are pegged to the US dollar, so if it were to collapse, it would cause a major economic crisis.
The Crash of UST and its Impact on TUSD
The collapse of TerraUSD (UST) had three stages.
- First, two traders broke UST’s peg.
- Then, Terraform Labs and three supporters fixed it by buying $2B UST.
- Finally, the continued sell-off used up those funds, drove up the price of UST’s sister token LUNA, and brought down the price of both LUNA and UST.
Because UST wasn’t backed by anything, it was probably less stable than other stablecoins. Also, redemptions of other stablecoins including TUSD did temporarily peak, but the collapse didn’t make a huge impact to the price of TUSD as the tokens were pegged to USD.
Advantages and Disadvantages
Advantages of TUSD
- In the U.S., TUSD has a license and is fully regulated.
- The accounting firm Cohen & Company does monthly checks to make sure that TUSD is always fully backed by the U.S. dollar at a rate of 1:1.
- TUSD can be traded on a number of top exchanges because the token is very liquid.
- As an ERC20 token, TUSD is protected by the Ethereum blockchain. This means that users can store their TUSD tokens in a wide range of software and hardware wallets.
- The FDIC backs up to $250,000 the bank accounts that hold the U.S. dollars that back TUSD tokens.
TrustToken has made other tokens besides TUSD, such as TCAD, TAUD, THKD, and TGBP. In the future, the platform plans to issue more tokenized currencies and assets.
Disadvantages of TUSD
- Users who use the TrustToken platform to buy or sell TUSD must meet AML and KYC requirements by submitting the right paperwork. Some people may trust the platform more because of this, but other people in the blockchain space may see this as an invasion of their privacy.
- TrustToken has full control over TUSD and all of its other digital assets. TrustToken can freeze a user’s account or take away their tokens if they think the user broke the rules or didn’t follow the laws and rules that users of TrustToken are expected to follow.
- There are many stable coins on the market now, unlike when USDT was the only option many years ago. There are a lot of choices, from USDC to GUSD, and it’s great that the list keeps getting longer.
FAQs
Why TUSD instead of USD?
There are many reasons to choose TUSD over USD. TUSD is a stablecoin, meaning that its value is pegged to the US dollar. This makes it a great choice for those looking to store value or make payments in US dollars without having to worry about volatility. TUSD is also backed by real assets, making it a more secure investment than USD.
How to earn TUSD tokens?
- Getting them via one of the following exchanges: Binance. HitBTC, Bittrex, Kryptono, Upbit, Coinbase, FTX and more.
- Purchase TUSD through the TrueUSD application (must pass KYC/AML).
- Obtain TUSD using instant exchanges like ShapeShift, Changelly, Faast or others.
Why is TrueUSD popular?
- The main reason why TrueUSD is popular is because it is a stablecoin. A stablecoin is a cryptocurrency that is pegged to a stable asset, such as the US dollar. This means that the value of TrueUSD will not fluctuate as much as other cryptocurrencies, which makes it more attractive to investors and users.
- Another reason why TrueUSD is popular is because it is backed by real assets. This means that there is less risk involved in holding TrueUSD, as it is backed by something of value. This also makes it more trustworthy than some other cryptocurrencies, which are not backed by anything.
- Finally, TrueUSD is popular because it is easy to use. The platform is user-friendly and easy to understand, which makes it attractive to those who are new to the world of cryptocurrency.
Read more: TOP 8 Best Stablecoins To Trade & HODL In 2023: A Full Guidance For Beginners
What can I buy with TUSD?
TUSD is a stablecoin that can be used to purchase a variety of goods and services. TUSD can be used to buy fiat currencies, other cryptocurrencies, and commodities. TUSD can also be used to pay for goods and services online and in-person.
How can I find more information about TrueUSD?
See more information about TrueUSD (TUSD) cryptocurrency:
- Official website: https://www.trusttoken.com/trueusd/
- Facebook: https://www.facebook.com/TrustToken/
- Twitter: https://twitter.com/TrustToken
- Telegram: https://t.me/joinchat/HihkMkTja1gIyBRM1J1_vg
- Github: https://github.com/trusttoken
- Medium Blog: https://blog.trusttoken.com/
Conclusion
Above is an overview of TrueUSD (TUSD) cryptocurrency, hopefully through the article will help you get useful things about TUSD coins. If you have any questions or want to share your knowledge about TUSD digital currency with us, please contact us in the comments section below, we will answer you as soon as possible.
Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.
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