The American dollar confidently takes the leading place in the world currency. With USD in the asset, you can make a purchase almost anywhere in the world. At the same time, the appearance on the financial market of such a phenomenon as cryptocurrencies could become one of the real threats to traditional fiat money. The trueUSD token is a digital currency backed by the US dollar. Its main feature is the stable price against the fiat dollar. Such tokens are also called stablecoin.
The trueUSD system, which we are reviewing today, is built on the backing of its token by a dollar fund. This makes the cryptocurrency rate as stable as possible since each digital trueUSD can be exchanged for real USD at any time. The protection of user funds is based on the American legislation governing the procedure for depositing funds and is based on cooperation with partner financial institutions. Thanks to this, trueUSD holders have the opportunity to carry out trading activities related to the purchase and sale of cryptocurrencies, operating reliably protected assets, and maintaining their anonymity.
What is TrueUSD?
The introduction and distribution of Tusd open up great opportunities for all participants in the cryptocurrency market.
Trading platforms and traders receive a reliable and stable instrument, protected from the high volatility of digital currencies, not subject to movements of major cryptocurrencies (BTC, ETH, and others) due to the entry into the system or outflow of fiat money;
Any user, both individuals, and companies, have the opportunity to use trueUSD and appreciate all the advantages of making settlements in digital currencies (high speed of transactions, no geographic restrictions, anonymity, etc.) – salary payments, everyday expenses, all this can be done using a stable cryptocurrency;
The stable exchange rate of the token allows you to use it when concluding long-term contracts with performance in months and years;
Widespread in emerging markets, which are increasingly paying attention to the use of cryptocurrencies in trade;
The ability to use digital technologies by banking and other financial structures when conducting operations in the cryptocurrency market.
Features of the project
The system of the project is built on a set of legal and technical standards, which allows providing liquidity and confirmation of the asset with real money.
The features of this project include:
Increased requirements for compliance with standards, which is necessary to ensure stable coin quotes and the absence of requirements for users to provide their personal data to banking structures or other systems. Legal issues have been resolved in such a way as to allow a direct exchange of tokens for dollars for escrow. Smart contracts provide a 1: 1 exchange of trueUSD for USD;
Use of Escrow accounts – the most reliable and common legal platform for regulating and controlling assets;
Stable trueUSD price – provided by the ability to exchange a token for an American dollar in a 1: 1 ratio;
Users are protected by American law in accordance with KYC / AML standards;
The platform demonstrates the maximum transparency of its activities – bank accounts are professionally audited every month;
High level of security of user funds, which is also ensured by independent audits;
The platform does not interfere with the conduct of transactions by users – they are carried out according to the method of direct influence.
The trueUSD coin is a stablecoin, or a digital token with a stable exchange rate against the US dollar. The token is created using ERC-20 technology and is backed by fiat currency. The trueUSD system uses Escrow accounts to minimize user risk and legitimize coin ownership.
In addition, there is a website for the service, which is designed to provide communication between tokens, their transfer to exchange wallets, etc.
TUSD storage and mining
Let’s start with the fact that you cannot mine trueUSD. Cryptocurrency is not mined. It can only be bought, either on the platform itself or on one of the exchanges on which it is listed.
Storing coins is also very easy. Since the token is issued in accordance with the ERC20 standard, you can use any Ethereum wallet. The most popular solution is the service Myetherwallet. Also, funds can be stored in exchange accounts or on a hardware wallet.
How the system works
The system of functioning of the trueUSD platform is based on the interaction of a number of trust companies that have assets in the billions of dollars. To be able to interact with the system, each company must pass the appropriate verification and confirm compliance with the requirements of the KYC / AML regulations, after which an escrow agreement is signed. Upon completion of these stages, smart contracts are created that provide the issuance of a trueUSD equivalent to the specified address in the Ethereumblockchain system.
To carry out an operation to redeem a dollar, it is necessary to use a smart contract through KYC / AML, which will transfer trueUSD tokens from the corresponding address in the Ethereumblockchain. After a successful deposit operation, the bank will send the funds to the specified account. This system eliminates the need for the trueUSD platform to interact directly with users’ fiat assets. All transactions are carried out by trust companies.
Unlike the USD analog popular in the cryptocurrency market, the token Tether ,trueUSD is backed by real fiat dollars. This is confirmed by the fact of passing the KYC / AML check, as a result of which the trust company receives a certain amount of the trueUSDcryptocurrency. Assets are backed by funds in escrow accounts. Each trueUSD coin corresponds to a redeemable certificate, the price of which is stable at $ 1.
Differences between TrueUSD and Tether
The TrueUSD token is positioned as a competitor to USDT. In fact, USDT is not capable of performing the functions of a stable coin initially assigned to it. The stated parity between this digital coin and the US dollar was maintained at the initial stage. Over time, there have been drops to almost $ 0.5 and ups to $ 1.3. The high volatility of the currency raises doubts about the reality of its economic feasibility.
Plus, information began to appear on the Internet that Tether can be used to artificially increase bitcoin quotes and pump up the capitalization of the entire cryptocurrency market. A number of users drew attention to the fact that the emission of a large volume of USDT caused (or preceded) a sharp jump in the prices of BTC and other coins. This allows us to conclude that Tether is used for pumps.
And most importantly, there are no guarantees from the developers about the exchange of tokens for fiat dollars about users. The refund system on the official website does not work, users are faced with withdrawal problems. In general, the company does not guarantee the exchange of tokens for USD.
For these and a number of other reasons, it is difficult to seriously say that TrueUSD competes with USDT. These are initially different projects. TrueUSD is based on the TrueCoin service, which provides the issuance of tokens. The fiat backing each token is held in custody with trust funds and other financial institutions. TrueUSD does not have access to these funds. Each TrueUSD coin has a legal value of $ 1.
Prospects and forecast
Note that the trueUSD cryptocurrency is not an investment tool. The token is characterized by price stability. It is a cryptocurrency, the value of which is backed by the real US dollar. The purpose of this coin is to provide guaranteed protection and safety of user funds.
In fact, the user does not care which coin to use for fixing profits, the main thing is that it should be actually pegged directly to a certain fiat currency and at the same time not be a SCAM.