TrueUSD, a cryptocurrency whose value is tied to that of the US dollar, has entered into a contract with BINANCE, one of the largest crypto currency exchanges in the world.
As of May 18, TrueUSD (ticker: TUSD) will be listed on Binance, allowing traders to trade it for Ethereum, Bitcoin or Rance Coin.
TrueUSD was launched in March by startup TrustToken in San Francisco and is a so-called Stablecoin – a cryptocurrency whose value is tied to the value of a traditional asset, in this case the US dollar. TrustToken claims that TrueUSD is fully collateralised with paper money held in trust accounts that can be trusted by third party trustees. The company announces that it publishes monthly reports on the status of its bank accounts and undergoes ongoing audits.
"The fact that US dollars are held in trust in addition to our regular accounting reports gives traders peace of mind that they can trust TrueUSD," said Rafael Cosman, co-founder and CTO of TrustToken, in a statement.
In other words, every single TUSD should always be redeemable at a 1
While the idea of a cryptocurrency based on an actual currency sounds ironic – the whole point of crypto was to develop an alternative to real, centralized financial systems – development is important to the space. Stablecoins offer traders and investors a degree of stability in the volatile world of cryptocurrencies, without the need to sell cryptocoins for easy money, an act that often has tax consequences.
"US dollars as collateral, in addition to our regular accounting reports, provide traders with the assurance that they can trust TrueUSD."
Previously, the dominant was Stablecoin Tether (ticker: USDT), which is linked to the cryptocurrency exchange Bitfinex , If you ask Tether, the company, USDT is fully hedged by Fiat currency assets on the company's reserve account. But there is a problem with this claim: $ 2.2 billion in circulation (according to CoinMarketCap), and the company has never been publicly audited. This, in turn, has led to speculation that the USDT is not sufficiently secured and that Tether prints new USDTs out of thin air.
The notion that tether could collapse and cause a major disruption to the cryptocurrency market is known in space as "Tether FUD" (with FUD standing for "Fear, Uncertainty, Doubt)."
Now traders on Bina – the With $ 1.8 billion in trading volume in the last 24 hours, you have the option to park your assets in TUSD rather than USDT to mitigate fears of a potential collapse of tethers, and the second largest cryptocurrency exchange (behind OKEx) To enable traders to hedge their bets and diversify over two USD-linked coins] TrueUSD is already available on the cryptocurrency exchange Bittrex, where it was launched in March, but Binance's trading volume is about seven times greater than Bittrex and it is the second largest tether market that makes this new partnership far more important.
There are currently circulating some 12 million TUSDs around the world same amount of secured dollars. The demand for Bina will probably be much larger, but Cosman says that will not be a problem.
"Right now, there are a lot of outside parties who are paying extra money into TrueUSD's trust account to buy tokens and trade on the stock exchanges, and the market capitalization of TrueUSD can grow by millions or tens of millions a day as soon as the US Dollars come into the trust account to seal new tokens, we mint and issue tokens, "he said Mashable .
TrueUSD and Tether are not the only stable coins, but they are the biggest ones, taking the simple but capital-intensive route of securing the entire token offering with actual Fiat reserves. Changes such as MakerDAO's Dai or Havvens nomination are supported on reserves in cryptocurrencies like ether as well as complex algorithms that hold the price. These alternatives are much more decentralized than a solution like TrueUSD, but they are not yet available on the largest exchanges.
However, there are some powerful competitors on the horizon, just a few days ago, Circle raised $ 110 million to create a stable currency pegged to the US dollar.
Disclosure: The author of this text has or has recently owned a number of cryptocurrencies, including BTC, ETH, MKR, DAI, HAV. The author of this text does not own or recently had TUSD or USDT.