Ana Sullivan

What is TrueUSD (TUSD Token) and Is It Going Mainstream?

by Ana Sullivan May 16, 2018

Cryptocurrency users have the ability to easily transfer funds between each other. But this still leaves the fiat question as something they need in order to purchase different virtual items since still, very few places accept crypto officialy. So the TrueUSD is the type of crypto that has been created to be something that resembles Tether in other words a fiat cryptocurrency that is from the Stable coin type. But since this project launched, the TrueUSD token has recently seen an insane price spike, which did raise some interests and suspicious of manipulation on purpose and this begs the question is the “stable coin” really stable?

TrueUSD – How Does It Work

Similar to it’s analogue Tether, TrueUSD aims to follow the price of the United States Dollar In the difference that it’s total supply is over 13 million TUSD tokens. And while it revolves and is concentrated around the price of the dollar, it’s price rose to above the $1.30 level which is in contrast with what this token is created for and that is to be used when it comes to financial transactions, mainly In united states dollars or simply if you want to use TUSD as a mean to store money online. While this is a good thing, TUSD still has some challenges to face in order to gain users’ trust as Tether has done, despite several hic-ups it faced along the way.

 

TUSD is a token with a clear idea behind it – it aims to serve the purpose of assisting simple financial services like trading online and supporting online businesses with stability. The TUSD technology aims to also be introduced to several exchanges as an alterantive to an USD and a mean to convert your deposit in exchanges if you want to trade crypto into TUSD. And Bittrex, who are always striving to catch the wave, have already introduced the USDT/TUSD market, giving the ability of the users to exchange Tether for TrueUSD. But while the token itself is tradeable at the moment, it still needs a lot of further testing as it’s still in a development phase.

 

The system and technology behind TrueUSD is designed in a way that the U.S. Dollars are held in the bank accounts of various different trust companies that have signed escrow agreements. This makes it untouched by a single company, hence increasing trust. According to TrueUSD, the contents of these bank accounts are share deach day as a transparency gesture and to allow audits to take place as it is according to the law. This method alsoo makes sure that the held TUSD tokens are not centralized – somehting that is aligned with the sole principles of cryptocurrenices. And all of this happens on the Ethereum-based blockchain which further increases security when issueing the tokens.

 

Overall and all, TUSD seems like a pretty stable project, but this idea may be in jeopardy as the token has recently spiked with well over 16.36% against the USD, according to @CryptoDarwin and Coinmarketcap. So be advised that even if a cryptocurrency has the history of being stable this does not mean that it is insured against crashing and always read more about the technology if you aim to use it in a beneficial way.

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