As the world of cryptocurrency expands, stablecoins have become increasingly sought after by investors and traders. Enter True USD (TUSD) – a reliable, secure option for all your crypto needs. Here we’ll explore this token’s features, benefits, and drawbacks to help you make an informed decision about investing in TUSD.
What is True USD?
Bolstering the cryptocurrency world, True USD (TUSD) has emerged. Developed by TrustToken and launched in March 2018, this stablecoin is pegged to the US dollar – providing a reliable alternative for those seeking stability amid other volatile cryptocurrencies.
True USD is a stablecoin built on the Ethereum blockchain, and its value remains steady due to every token being backed by an equivalent amount of US Dollars held in reserve. This ensures that it won’t be subject to the same considerable market fluctuations experienced by other cryptocurrencies.
How does True USD work?
True USD is a straightforward process to understand. When someone desires to buy True USD, they must go through the KYC (Know Your Customer) procedure for identity verification before proceeding. After their identity has been authenticated, users can then purchase True USD when sending US dollars directly to one of TrustToken’s partner banks. These funds are securely held in reserve and an equivalent amount of True USD will be allocated to the user instantly.
To redeem their True USD for US dollars, a user simply sends their tokens to TrustToken and the equivalent amount of money is immediately transferred into their bank account.
To make sure that the number of True USDs in circulation is always equal to or greater than its dollar reserve, the process is made completely clear and inspected by independent auditing companies.
Advantages of True USD:
- Stability: True USD stands apart due to its unwavering stability. As a collateralized stablecoin, it’s consistently worth the same amount over time, making it an ideal choice for traders and investors who prefer not to deal with cryptocurrency unpredictability.
- Transparency: TrustToken offers consistent verifications from third-party auditors, revealing the amount of US dollars accessible to back up their True USD circulation. This level of clarity ensures that users can trust in the fact that their True USD has a full coverage behind it with US dollar reserves.
- Fast transactions: Transactions made with True USD are incredibly swift and the transaction fees associated with it are significantly more affordable than other cryptocurrency options. These features make this currency an ideal choice for individuals seeking to transfer funds quickly without breaking their budget.
- Decentralized: By leveraging Ethereum’s blockchain technology, True USD presents users with complete autonomy over their finances―all whilst minimizing the likelihood of fraud and other malevolent actions. Thanks to decentralization, no central authority can interfere in user transactions or impose restrictions on them.
Limitations of True USD:
- Centralized KYC process: Although the process of buying and spending True USD is decentralized, the Know Your Customer (KYC) procedure remains centralized. This could be a potential issue for users who prioritize their privacy due to needing to hand over personal information to an external party.
- Limited adoption: True USD has seen substantial growth, but it is not accepted as widely in the marketplace as other stablecoins like Tether (USDT) or USD Coin (USDC). This could mean that using and trading with it may be more of a challenge.
- Limited use cases: True USD is mainly used to trade and invest, however it can also be utilized for payments or remittance transfers. Even though these functions are available, acceptance of this cryptocurrency might not be as common compared to other crypto options.
True USD is the ideal choice for traders and investors seeking a stable crypto asset that does not suffer from extreme volatility. With full collateralization, transparency, and freedom from any central authority, it offers an array of advantages compared to other cryptocurrencies – including fast transaction times as well as KYC processes. Despite some limitations in terms of adoption levels, its stability and reliability makes it an attractive option whenever quick transfers with security are desired.
As the crypto market advances, stablecoins such as True USD are likely to become ever more critical. With an increasingly growing need for reliable and consistent options that can replace traditional currencies, it’s evident that True USD and other comparable coins will have a pivotal role in the financial sector of tomorrow.
In closing, True USD is a strong stablecoin with admirable qualities such as stability, transparency and swift transactions that make it an enticing option for traders and investors. Despite some potential limitations, this cryptocurrency offers numerous benefits making it a viable substitute to other cryptocurrencies. As finance further develops in the coming years, it will be captivating to observe how True USD and its rivaling stablecoins influence the growth of this industry moving forward.