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Crypto

What Is True USD? (TUSD)

TrueUSD Logo
TrueUSD Logo

If you’re considering investing in crypto, finding a stable coin that offers good returns is crucial. One of the strongest coins in the crypto market is TrueUSD.

But before you settle for a coin, you should probably do some research. Even if the coin is as good as TrueUSD, you don’t want to be blindsided. If you’re looking to know more about TrueUSD in general and all the reasons why you should invest in it, this is the right place. 

In this guide, we will give you an honest review of a coin that has made a name for itself in the world of crypto. So read along and find out all there is to know about True USD.

What Is TrueUSD?

TrueUSD is one of the leading cryptocurrencies people have been dealing in recently. You can trade TrueUSD with USD for 1:1. It’s also the only coin you’ll be able to find that will offer you real-time audits. But how did it find a place so high in the trading market? If you’re wondering the same thing, this might make the whole ordeal a whole lot easier to understand.

TrueUSD is backed by the USD. Being a fully-collateralized ERC20 stablecoin, TrueUSD enjoys the status of legal protection. It’s also one of the few coins you can easily get verified by third-party attestation. If you’re one of their token-holders, they will provide you protection against misappropriation by using multiple escrow accounts.

Even though TrueUSD is the first token built on TrueToken, it has many remarkable things about it. TrueUSD stands out as a star performer in the crypto trade. Here’s a little more insight into how it came to be what it is.

A Brief Look at the History of the Coin

TrueUSD and TrustToken work together in a cooperative relationship and go a long way back. The coin was first introduced in 2018 through the True Token platform. True Token then distributed their TrueUSD coins on their platform, Smart contract. Since then, its True Token has put in a lot of effort to transform its real-world assets into tokenized ones on its platform.

With each coin backed by 1 USD by December 2019, TrueUSD had made its place in the crypto market. It had become the very first stablecoin that would offer real-time audits.

If we make a timeline of their achievements, it starts in April 2018 with TUSD emerging as a stable coin. One that is fully backed by the USD. My May of 2018, TUSD had been listed on Binance, and in September 2018 alone, it had exceeded $100 million. With its final launch in August of 2019 on the Binance platform, TUSD had made its debut. In September of 2020, the overall market cap of the coin had reached $200 million.

TUSD made a debut on the Avalanche chain, TRON chain, and Binance Smart chain in March 2021, April 2021, and May 2021, respectively. Finally, TUSD broke the all-time market cap record at over $1.7 million in June 2021.

The Makers of TrueUSD

If you want to have an understanding of how TrueUSD came to be, then it is incomplete without knowing the team beyond the success. It’s these individuals that made the coin what it is now.

You might already know Rafael Cosman (CTO/co-founder), Danny An (COO/co-founder), Stephen Kade (CEO/co-founder), Alex de Lorraine, Justin Sun, and Teresa Anaya. These people are the brains responsible for managing and guiding the coin to scale up and become the phenomenon we know today. The TrueUSD team is a diverse blend of creative Entrepreneurs, IT experts, and financial managers.

As the company flourishes, we get to see more outstanding brains join the firm.

The Purpose of The Coin

If you want to make an investment in TrueUSD, then you need to understand what the coin does. And gratefully for us, the TrueUSD team has made the idea behind the coin as clear as day.

The idea is simple yet effective. TrueUSD aims to improve liquidity and provide the deserved legitimacy to cryptocurrency. If you’re a trader in TrueUSD, then the coin will exploit all potential means of providing you with returns. You can expect to get a return similar to what you get with other free-floating currencies like Bitcoin.

TrueUSD Actual Net Worth

It’s hard to pinpoint the true net worth of crypto coins since they’re constantly being traded. However, we can make a close estimate. Having a close estimate is essential for potential investors since you should know how deep the water gets before you step in. For cryptocurrency, it can be next to impossible to find an annual financial report for a clear understanding of the currency’s financial position. However, we can understand something by looking at the everyday trades as well as the total funding in the company.

Total Funding of TrueUSD

From the time of its release, TrueUSD has been documented to have raised $21.7M. Having achieved that is nothing but a few years is something truly remarkable that the company has been able to achieve.

Out of all this money, the company had to initially invest $20M. The coin has managed to raise additional capital of $1.7M through trading.

TrueUSD in the Crypto Market

How a coin performs in the market on a daily basis says a lot about its future. However, since TrueUSD is pegged by the USD, its price varies only with the changes in the prices of the USD.

In theory, this means that there aren’t many fluctuations you should be worried about. Apart from how the overall economy performs and the global trends go, there aren’t many factors affecting the price of TrueUSD. However, any changes in the price of a dollar will affect the value of TrueUSD.

But that’s not entirely a bad thing. If the USD appreciates and the overall economy of the USA flourishes, the value of your TUSD will appreciate as well.

How Does TrueUSD Operate?

Before you invest in a coin, the best idea is to understand how it works. Some people do tend to ignore this important detail. However, just like you need to understand the capital structure of a blooming business, you should also know how crypto works.

How Is TrueUSD Pegged with USD?

There might be some confusion as to exactly what assets are backing the TrueUSD coin. But there are a few important clues. The fact that there has been mention of escrow accounts is proof enough that there is an investment of USD in the TrueUSD funding.

But the question still stands. How does Trust Token make money from TrueUSD? Since we don’t know much about the Trust Token reserves, unfortunately, nothing can be said on that matter. But we do know one thing for sure. The coin is backed by the USD for a large part. And because of that, it is a safer coin with little to no third-party risks.

How Does it Work?

The operation of the TrueUSD coin is based on two fundamental principles. The first step is the purchase of TrueUSD, and the second step is the redeeming of TrueUSD. We need to understand both these individually to make sure things don’t get too complicated.

Purchasing TrueUSD

Purchasing the TUSD is a legally binding procedure. For the purchase of the TrueUSD, TrustToken partners with many trust companies. Those interested need to pass mandatory KYC/AML checks.

KYC stands for ‘know your customer,’ and AML is the ‘anti-money laundering check.’ Banks and other financial institutions use KYC identity verification. They use this check to ensure that all of their customers aren’t involved in any form of illegal business. KYC is an important part of the AML, which has a broader perspective. AML, on the other hand, is a screening both companies and banks are interested in regarding their employees or customers. The Idea is to ensure to screen the candidate’s potential to launder money through the company or the bank.

The next step is for the company’s API to verify the details of your funds. It can then direct the TUSD smart contract to transfer TrueUSD equivalent to your real assets into your public Ethereum address.

Redeeming TrueUSD

The second order of business is to redeem TrueUSD. Once again, you’ll need to have a KYC/AML check clearance. The next step is to send your smart contract along with your TrueUSD tokens. You can do this using your Ethereum address. Following this, the escrow bank will transfer your funds in USD.

Using this network, TrueUSD doesn’t interfere with any of your funds. All your transfers regarding purchasing and redeeming the funds are done through trust companies and escrow accounts.

Should You Really Invest in TrueUSD?

Crypto is the new investment route many millennials are taking. TrueUSD is dubbed one of the most secure stablecoins making it one of the leading crypto investment opportunities. But you should know exactly what the pros and cons of TUSD are before you put your money in it.

Pros

  • TUSD is backed by the USD, dollar to dollar. The USD reserves are held in the partner banks making TUSD the safest investment for those who prefer playing safe.
  • TUSD can be trusted completely, and it goes through regular audits. Escrow companies like Cohen and Company conduct monthly audits on TUSD operations. Thus, you can rest assured that the USD is the actual asset reserve used to hold TrueUSD.
  • You can also hold TUSD in your Ethereum wallet. So all TrueUSD coins are released according to the ERC-20 protocols. This means you get to make easy transfers and a reliable currency.
  • TrueUSD is also among the army of Trust Token coins. With TrueGBP, TrueUSD, TrueCAD, TrueEUR, True HKD, and TrueAUD, you get to make your own True Token account and portfolio. You also get multiple stable coins all backed up with their respective FIAT currencies.

Cons

Even though there’s a lot to be celebrated about the TrueUSD coin, it does have a few technical liabilities you might not be aware of. Even though they aren’t huge, it’s good to be well educated on your investments.

  • Even though being backed by the USD makes TUSD a stable coin. Any fluctuations in the USD will cause the prices of TUSD to drop as well. This means that the TUSD you hold is also liable to changes in the economic conditions in the US.
  • Since TUSD is compatible with Ethereum, it opens many new windows of opportunities for the TUSD coins. However, on the flip side, by holding TUSD, you become exposed to counterparty risks. Unfortunately, this means that if Ethereum goes down, your TUSD coins go down as well.

TrueUSD Interesting Facts

There are many fascinating things about the TrueUSD coins. The following things are the shining stars in the TUSD portfolio.

  1. The price of TUSD tokens remains between $1 – $0.9995.
  2. The everyday trading volume of the coin averages about $200,276,422.
  3. The price of the token reached an all-time of $1.36 in March of 2018. The all-time low of the coin was in March 2020 at $0.9179.
  4. The coin also provides stable year-to-date returns of about 0.02%.
  5. It’s ranked top 94th in the crypto market.
  6. The market cap of the coin stands at $1.29 Billion.

TrueUSD In The News

TUSD has many achievements under its belt. It’s been the talk of the town quite a few times. In November 2021, TUSD made headlines again with a new partnership. It had joined the Pangolin V2 platform. What was dubbed as a “critical addition to the DeFi ecosystem” on Avalanche’s Twitter provider humungous returns to those holding TUSD. The TUSD-AVAX hiked by 562% and left all other stablecoins to bite the dust.

Conclusion

TrueUSD is among the leading cryptocurrencies in the market. It’s stable, reliable, safe, and trusted by many.

If you’re thinking of investing in crypto, TUSD is the most profitable and risk-averse investment. Backed by the USD, as one of the most stable currencies, the chances of major losses are relatively low. However, a 0.02% yearly return isn’t huge. It’s still a stable stream of income and makes TUSD an attractive coin.

References

  1. https://www.trueusd.com/company
  2. https://messari.io/asset/trueusd/profile
  3. https://blog.trusttoken.com/trueusd-faq-18dbc563fb67
  4. https://coinmarketcap.com/currencies/trueusd/
  5. https://sashares.co.za/trueusd-review/#gs.khizbf
  6. https://hub.easycrypto.com/trueusd-tusd
  7. https://craft.co/trusttoken/metrics
  8. https://medium.com/@behrangesmi/what-is-trueusd-tusd-3218a67a36a4
  9. https://www.lightico.com/blog/id-verification-what-is-the-difference-between-kyc-and-aml/
  10. https://www.sterlingrisq.com/integrity-screening/anti-money-laundering-aml-checks#:~:text=An%20AML%20check%20is%20a,banks%20and%20other%20financial%20institutions.
  11. https://www.cryptovantage.com/buying-crypto/trueusd-review-the-most-secure-stablecoin/
  12. https://www.napbots.com/guide/trueusd-token-tusd
  13. https://www.cryptoglobe.com/latest/2021/11/37847/

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