TrueUSD (TUSD): How is it different from USDT (Tether) cryptoforbs

If you are a fan of cryptocurrencies, today’s topic may be great and useful for many of you.

I’m sure you’ve heard of Tether (USDT), and maybe others have used it as well.

For the uninitiated, USDT is a USD-backed stablecoin or cryptocurrency that started with the promise of being 1:1 USD:USTD and serving as a haven against extreme volatility in the cryptocurrency markets.

But did you know that USDT’s working methods are questionable and very far from its original purpose?

I’ve mentioned some of the USDT bugs here: Tether (USDT): Beginner’s Guide, Controversies, and More…

One of the main controversies surrounding Tether is that it is not open to regular audits and does not have a proper process to prove that it has sufficient US dollar reserves.

Moreover, the repeated pumping and dumping of Bitcoin coincided with the printing of large amounts of USDT, which does not seem like a coincidence, at least to me.

In addition, their close ties with Bitfinex are not a secret anymore.

So all of this requires getting another fiat-backed stablecoin that is fair and auditable to put an end to the market manipulation tactics that USDT and Bitfinex seem to be practicing.

For this reason, in this article we will conduct a fundamental analysis of the new stablecoin – True Dollar (TUSD) – And see how it is better and different from USDT.

We will address the following points in this article:

What is TrueUSD?
How does TrueUSD work?
TrueUSD Team
Why use TrueUSD?
TrueUSD fees
The real market value of the US dollar
How to buy TrueUSD?
Tether vs. TrueUSD
Future plans for TrueUSD

What is TrueUSD?

TrueUSD is an ERC20 stablecoin backed by USD that is fully collateralized, legally protected, and transparently verified through third-party certificates.

TrueUSD uses multiple escrow accounts to reduce counterparty risk and provide token holders with legal protection against it Misappropriation.

It is also the first asset token created on TrustToken, a platform for creating asset-backed tokens that you can easily buy and sell around the world. For example, cryptocurrencies can be converted from gold to gold or cryptocurrencies from dollar to dollar via the TrustToken platform.

How does TrueUSD work?

There are two basic operations while using TrueUSD, one is to buy TUSD, and the other is to redeem TUSD.

To buy TUSD

For this reason, TrustToken works with many Trust companies Which already manages billions of dollars. Here the user is required to mandatorily pass a KYC/AML check after which one can send the USD to a trusted company to enter into the escrow agreement. After verifying the funds, their API instructs the TrueUSD smart contract to issue TrueUSD equivalent to the user’s public Ethereum address.

To redeem TUSD

To redeem USD, one needs to pass a KYC/AML check and then send the smart contract, your TrueUSD tokens, from your registered Ethereum address after which the escrow bank will send you the funds in USD. This way, the TrueUSD system does not touch the funds, nor does it touch Trust companies Carrying out all purchases and receiving user funds through escrow accounts.

TrueUSD Team

The founding team consists of real people who previously worked at Google, PwC, and UC Berkeley. In addition, they get the desired traction by implementing the correct legal framework they have put in place.

Why use TrueUSD?

TrueUSD is the real cryptocurrency backed by real US dollar fiat reserves that are independently and regularly audited. That’s why some of the benefits it brings with it are too good to ignore:

#1. TrueUSD is backed by the US dollar, acting as a stablecoin for the digital exchange.

#2. Anyone who passes the standard KYC/AML check can exchange TrueUSD for USD.

#3. All TrueUSD is always 100% collateralized in US dollars, and is held in the banks of professional credit companies.

#4. Bank account holdings are published regularly and are subject to monthly certifications.

#5. Regular, independent third-party assessments by leading audit firms for best security practices.

#6. Dealing directly with the credit company’s bank. The TrueUSD system never touches the funds.

TrueUSD fees

Current fees:

To buy and redeem TrueUSD against the US dollar: the greater of 10 basis points or $75.
10 basis points on TrueUSD transactions between Ethereum wallets.

NB: 10 basis points equals 0.1%

The real market value of the US dollar

There is no upper limit for the supply of TUSD tokens as the concept is to issue ERC20 tokens pegged 1:1 to the USD.

That’s why, as of now, according to CoinMarketCap, the total circulating supply of TUSDT is 43,523,903 TUSD, the current price per unit is $1. This estimates it at about $43 million (At the time of writing this article).

How to buy TrueUSD

TrueUSD is just like USDT but much better with proper verification channels A few exchanges have started listing TrueUSD, which are:

Binance
Beatrix
UpBit

Tether vs. TrueUSD

TrueUSD differs from Tether in its implementation and management.

Here are the features that are missing in Tether but present in TrueUSD, making it the first choice.

Legal protection with escrow accounts: Escrow accounts are one of the most widely used legal means of managing other people’s money, and they allow regular certification and strong legal protections for token holders.
Full guarantees: Each TrueUSD is always fully collateralized in US dollars, and is held in the escrow account of a professional credit company. TrueUSD’s publicly audited smart contracts mint TrueUSD when USD clears escrow and burn TrueUSD when USD is redeemed to ensure 1:1 parity between the traded TrueUSD and USD in escrow.
Regular certificates: Escrow holdings are published regularly and are subject to ongoing professional certification. Here recently Example of a certificate By Cohen & Company.

The latest certification report for TrueUSD funds was published by Cohen & Co. TrueUSD is currently the 74th largest cryptocurrency in the world by market cap. https://t.co/dFUp8QCHAr

– Trust Token (@TrustToken) September 7, 2018

These things are missing with Tether.

Future plans and use case for TrueUSD (TUSD)

TUSD can meet use cases such as:

Cryptocurrency traders and exchanges: to hedge against volatility
Mainstream trade: in favor of digital currencies
Developing economies: Venezuela like countries
Financial Institutions: To facilitate institutional crypto investments

They also plan to tokenize other assets such as TrueEuro, TrueBond, TrueYen, and stable baskets of tokenized commodities (including precious metals and real estate), all of which could be listed on exchanges around the world for skilled global trading.

Finally, there couldn’t be a better time to launch a stablecoin like TrueUSD when we see a decreasing trend of confidence in USDT. After all, we should diversify into stablecoins as well.