If you are interested in cryptocurrencies, today’s topic may be intriguing and informative for you. Tether (USDT) is a cryptocurrency that aims to be stable and is backed by USD. However, there are some concerns about the way Tether operates and how it is far from achieving its original goal. In this article, we will discuss some of the controversies surrounding Tether and introduce a new stablecoin called TrueUSD (TUSD) as an alternative.
Tether has faced criticism for not being open to regular audits and lacking a proper process to prove its sufficient USD reserves. Additionally, there have been instances where large amounts of USDT were printed coinciding with pumps and dumps of Bitcoin, raising suspicions about market manipulation. Tether’s close connections with Bitfinex, a cryptocurrency exchange, have also become more evident.
To address these issues, there is a need for another fiat-backed stablecoin that is fair, auditable, and transparent. TrueUSD is a USD-backed ERC20 stablecoin that offers all these qualities. It is fully collateralized, legally protected, and transparently verified by third-party attestations. TrueUSD uses multiple escrow accounts to reduce counterparty risk and provide legal protections for token-holders.
TrueUSD works through two processes: purchasing and redeeming. TrustToken, the company behind TrueUSD, works with trusted trust companies to manage the funds. Users need to pass a KYC/AML check to send USD to a trust company and receive an equivalent amount of TrueUSD. To redeem USD, users go through a similar process in reverse.
The founding team behind TrueUSD comprises individuals with experience in reputable companies like Google, PwC, and UC Berkeley. They have established a strong legal framework and are gaining momentum in the market.
The benefits of using TrueUSD include its stability as it is backed by real USD reserves that are audited independently and regularly. It offers legal protections, full collateralization, and regular attestations of funds held in trust accounts. TrueUSD also allows direct transactions with the trust firms’ banks, ensuring the system never touches the funds.
TrueUSD has no upper limit cap on its token supply, and its current circulating supply is 43,523,903 TUSD. The current price of each unit is $1, valuing it at approximately $43 million.
To purchase TrueUSD, users can access various exchanges that have started listing the stablecoin. TrueUSD differs from Tether in terms of implementation and management. It offers legal protection with escrow accounts, full collateralization, and regular attestations, which Tether lacks.
In the future, TrueUSD plans to tokenize other assets such as TrueEuro, TrueBond, TrueYen, and stable baskets of tokenized goods for global trade. It can cater to various use cases, including crypto traders and exchanges, mainstream commerce, developing economies, and financial institutions.
As trust in Tether decreases, launching a stablecoin like TrueUSD becomes more crucial. Diversifying stablecoins is essential for the cryptocurrency market.
For more information and updates on TrueUSD, you can visit their official resources.