What is TrueUSD (TUSD)? Don't Miss Our Article For the Best Answer

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Metaglobal

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What makes TrueUSD so special? This article will give an overview of TUSD.

I. What is TrueUSD (TUSD)?

1. What is TrueUSD?

Stablecoin is a type of cryptocurrency that is pegged to fiat currencies or commodities. Historically, stablecoins have helped traders earn trading profits more conveniently by allowing them to interact significantly less with traditional banks each time they place a trade.​

2. What is TrueUSD (TUSD)?


TrueUSD (TUSD) for short, is one of several well-known fiat-collateralised stablecoins in the world. Although its current market capitalization is not as significant as the top 50 cryptocurrencies (as of Aug ‘21), when it comes to stablecoins, the brand matters more.​

II. How Does TrueUSD (TUSD) Work?

There are mainly two processes involved while using TrueUSD, one is the purchase of TUSD, and the other is redeeming of TUSD.

For Purchase of TrueUSD (TUSD)

For this, TrustToken works with multiple trust companies that already manage billions of dollars. And here the user is required to mandatorily pass a KYC/AML check after which one can send USD to a trust company to enter an escrow agreement. After the verification of the funds, their API instructs TrueUSD’s smart contract to issue the equivalent TrueUSD to the user’s public Ethereum address.

For Redeeming TrueUSD (TUSD)

To redeem USD, one needs to pass a KYC/AML check and then send the smart contract, your TrueUSD (TUSD) tokens, from a registered Ethereum address after which the escrow bank will send you funds in USD.

This way, the TrueUSD system does not touch the funds, and the trust companies do all purchase and receipt of the user's money through escrow accounts.

III. Use Cases of TrueUSD (TUSD)

TrueUSD in its feature of simplicity allows anyone access to use the token, which means it has no restrictions on who can hold the coin. However, this is only on the condition that TUSD is listed on the exchange company involved.

Therefore, anyone who picks the slightest interest in the use of cryptocurrencies can use TUSD and at any time, without the fear of a volatile market. In other words, the asset is much available for crypto-related companies, traders and firms who want to venture into the crypto space.

TrueUSD (TUSD) can also cater to mainstream commerce for the benefit of digital currencies as well as financial institutions to facilitate institutional crypto investments.

TrueUSD allows anyone to utilize the token, implying that there are no limits on who may retain the currency. This, however, is contingent upon TUSD being listed on the exchange business in question.

As a result, anybody with the smallest interest in cryptocurrency use may use TUSD at any moment, without the worry of a turbulent market. In other words, the asset is very accessible to crypto-related businesses, dealers, and corporations interested in entering the crypto market.

TrueUSD (TUSD) may also be used to assist institutional crypto investments by catering to mainstream trade for the advantage of digital currencies and financial institutions.​

IV. Benefits of TrueUSD (TUSD)

The exclusive benefits that come with the use of TrueUSD have made it top on the list of investors’ alternatives.
Since TrustToken generates its revenues from USD interests held in their accounts, it charges no fee for trading TUSD. Thus, one of these advantages is that the token ensures zero or less transaction fee for users.

Moreover, with the consistent attestation and the extreme transparency TUSD provides, investors are thereby relieved of the fear of manipulations. Its transparency is considered top-notch among others. It also supports the redeeming of the token for the corresponding quantity of the US dollar with ease.​

V. Is TrueUSD (TUSD) a Good Investment?

Yes, TrueUSD (TUSD) is a good investment.

Because stablecoins are tied to real-world assets, they do not increase in value. This does not exclude investors from “investing” in stablecoins in the same way that they would foreign currencies. The US dollar is the world's reserve currency now.

Certain individuals may even hedge their country's currency by investing in more stable currencies like British pounds, Canadian dollars, and Australian dollars – all of which may be tokenized via TrustToken.

Another incentive to invest in TrueUSD is that it is widely used in DeFi applications like liquidity pools and peer-to-peer lending, which enables investors to earn high-interest rates.

With a near-zero danger of experiencing liquidity issues, TrustToken may potentially issue as much TUSD as users need and deliver the precise number of dollars required by TUSD holders. This characteristic is what attracts both major and small investors to TUSD.​

VI. Where can you buy TrueUSD (TUSD)?

TrueUSD (TUSD) can be bought, sold, traded, and exchanged on any of the following crypto exchange trading platforms:
  1. Gate.io​
  2. Binance​
  3. Huobi Global​
  4. HitBTC​
  5. OKEx​

VII. FAQS


1. Is TrueUSD a Stablecoin?
Yes, TrueUSD is a fiat-collateralized stablecoin with a 1:1 peg with the United States Dollar.

2. Which wallets support TrueUSD (TUSD) tokens?
The best digital wallets that support TUSD are as follows:​
  • Math Wallet​
  • MetaMask​
  • Trust Wallet​
  • Huobi Wallet​
  • imToken​
3. Does TrueUSD use coin burns?
Yes, TrueUSD uses coin burns. When users purchase TUSD tokens, new coins are minted, and US Dollars are kept in reserve in a 1:1 ratio for each TUSD coin. When TUSD is sold, the coins are subsequently burnt.

4. What can TrueUSD smart contracts do?
Smart contracts on TrueUSD are used to mint and burn TUSD.

When traders convert USD to TUSD, funds are sent to escrow accounts which will automatically send a signal to TrustToken. TrustToken will then activate its smart contracts, effectively minting TUSD, which are transferred to the trader's wallet address.

If traders redeem their TUSD, the funds will be sent to the TrustToken smart contract, signaling for the tokens to be burnt and the proportional amount of USD to be returned to the trader.​

Conclusion

The TrueUSD (TUSD) currency is fully backed by USD reserves and is frequently audited by top accounting firms in the US. The appeal of this currency is that risk is significantly reduced for investors and they can feel safe holding large amounts of money for extended periods.

If you have any questions, ideas or problems, please leave a comment below. The cryptocurrency market is quite risky, please consider carefully before your investment decisions.​
 

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