TrueUSD Review: The Most Secure Stablecoin?

Stablecoins were invented with the intent of creating cryptocurrencies that didn’t suffer the primary drawback of the industry: volatility, and the second most: legitimacy. This gave rise to many different types of stablecoins such as TrueUSD, a cryptocurrency that is fully backed dollar for dollar by USD. After going through a verification process, users can purchase and redeem TrueUSD for USD, sent directly to their bank account, without any third party interaction. In order to ensure their reputation, TrueUSD undergoes regular audits on their trust accounts holding the USD to verify balances.

General Overview

The Benefits PRO's
  • One of the most reliable stablecoins.
  • You can redeem your TUSD for USD any time you want.
  • Regularly undergoes audits by financial institutions.
The Downside CON's
  • As with all stablecoins you'll never make a huge amount investing in TUSD
  • If the US dollar drops in value so does TUSD

Our Favorite Cryptocurrency Exchange for TUSD

Binance Logo

Binance

  • Easy sign-up process
  • Lowest transaction fees of any major exchange
  • 175+ different digital assets available
  • Free deposits

Ratings

Price:

  • ATH: $1.36 (May 16, 2018)
  • ATL: $0.918 (Mar. 13, 2020)

MCAP:

  • Current: $135,196,370
  • ATH: $254,701,949 (June 7, 2019)

Supply:

  • Current: 134,382,882 TUSD
  • Max: Uncapped

Network Speed:

  • Rating: Slow
  • Transaction Time: 15s – 5 minutes
  • Transaction Rate: ~15/s

Disbursement:

  • Rating: High
  • TrueUSD is dispersed across the globe, primarily through its network of exchange listing. Being listed and used as a stablecoin on Binance provides access to North American and European markets, and being listed on Huobi provides access to Asian markets.

Dev Engagement:

  • Rating: Medium/Low
  • TrueUSD is developed by TrustToken’s team of developers, and although is open source, and only has 6 contributors developing on the code. It is regularly updated and is mostly being built out to include other currencies. The TrueUSD smart contract finished development over a year ago.

Liquidity:

  • Rating: High
  • TrueUSD has gained a lot of popularity due to its reliable and “one-click” redemption process for USD (once the user is verified) – and vice versa.

Where Can I Buy TrueUSD?

TrueUSD can be purchased from TrustToken on their website, if you wish to redeem for USD and fully utilize the stablecoin. This requires full KYC/AML verification in order to connect a bank account and purchase or redeem TrueUSD.

You can also buy TrueUSD on over 70 exchanges around the world, the most popular being Binance, Huobi, OkEx, BitZ and ZB.com.

History of TrueUSD

TrueUSD was launched in January of 2018, following the cryptocurrency crash in 2017/2018. TrueUSD met the increased need for a transferable alternative to regular cryptocurrencies. It was also a time when there was hot contention brewing about the leading USD backed stablecoin, Tether (USDT), and it’s mysterious and un-audited USD reserve, along with its unclear and nontransparent partnership with Bitfinex.

In the midst of the lack of clarity, exchanges were looking for better alternatives to Tether. TrustToken, parent of TrueUSD, capitalized on this opportunity and launched its stablecoin in 2018. Soon after, TrustToken created multiple stablecoins for different currencies such as TrueGBP, TrueEUR, TrueCAD, TrueHKD, and TrueAUD.

Advantages of TrueUSD

Trusted Backing: TrueUSD is backed dollar for dollar by USD, and is held in partner banks that handle the user funds directly.The company behind TrueUSD, TrustToken, not involved in this process at all. This means that when users are purchasing TrueUSD, they are trusting deposit institutions, such as PrimeTrust, that hold the funds backing TrueUSD, who have banking relationships with the Bank of America.

PrimeTrust acts as an escrow account. This enables coin holders to audit the holdings regularly, and know that TrustToken has zero access or control over the funds. This also builds true among users, knowing that USD holdings as solely the property of the TrueUSD token holders.

Regular Audits: TrueUSD has had its code audited, and goes through regular monthly audits of its escrow accounts by entities such as Cohen & Company. This reinforces user trust by ensuring that every circulating TrueUSD is redeemable for USD whenever the user wishes.

Built on Ethereum: This is an advantage because it enables holding TrueUSD in Ethereum wallets. This allows for easy transfers, as well as being held alongside many other Ethereum tokens. It also ensures that the token is built using a reliable standard, ERC-20.

More than one stablecoin: As stated earlier, TrueUSD is built by TrustToken, who also has multiple other stablecoins such as TrueGBP, TrueEUR, TrueCAD, TrueAUD, and TrueHKD. This allows users to set up their TrueCoin account on TrustToken’s website, and then have access to purchasing all these various stablecoins, pegged to their respective FIAT currencies.

Disadvantages of TrueUSD

Pegged to USD: As much as this is the sole reason for this cryptocurrency to be called a ‘stablecoin’, TrueUSD’s buying power isn’t shielded by economic conditions of its respective FIAT currency. In times such as 2020, when US markets are in turmoil, the buying power of TrueUSD will also fluctuate in tandem with the US dollar, making it liable to economic conditions in the US.

Built on Ethereum: This serves to be a disadvantage, as much as it is advantageous. Being built on Ethereum opens up counterparty risk, meaning TrueUSD is vulnerable to anything that Ethereum would be vulnerable to.

TrueUSD Frequently Asked Questions

About the Author

CryptoVantage Author Jack Spade

Jack Spade

Jack Spade has been investing in Bitcoin since 2015. He has developed a keen sense of where the industry is going, and is continuing his research into blockchain applications. His interests lie in private capital, startups, and financial technology.