TrueUSD (TUSD) Definition
TrueUSD (TUSD) is a stablecoin, a type of cryptocurrency that aims to maintain a stable value relative to a specific asset or a pool or basket of assets. In the case of TrueUSD, it is pegged to the US Dollar, with a 1:1 ratio. This means each TrueUSD token is theoretically backed by one US Dollar held in reserve.
TrueUSD Key Points
- TrueUSD is a stablecoin pegged to the US Dollar 1:1.
- It’s built on the Ethereum platform and is ERC-20 compliant.
- TrueUSD can be bought, sold, and traded on different cryptocurrency exchanges.
- TrueUSD provides regular audits to ensure transparency in their reserve holdings.
- It is managed by TrustToken, a blockchain-based trust company.
What is TrueUSD?
TrueUSD is a form of cryptocurrency that is pegged to the value of the US dollar. Like other stablecoins, its aim is to combine the steady value of a traditional currency, in this case the US dollar, with the technological advantages of a cryptocurrency. Being a stablecoin serves as a hedging mechanism against the volatility of cryptocurrencies.
Who Created TrueUSD?
TrueUSD was created by TrustToken, a blockchain-based trust company. The company launched TrueUSD in March 2018, aiming to bring stability and transparency to the cryptocurrency market.
Where is TrueUSD Used?
TrueUSD can be used in a variety of scenarios. These include use as a trading pair in the cryptocurrency market, as a form of payment in the real world, or as a store of value to protect against the volatile nature of other cryptocurrencies.
When was TrueUSD Created?
TrueUSD was created and launched in March 2018 by the TrustToken team. Since then, it has grown substantially and transitioned from its initial closed beta to becoming publicly tradable.
Why is TrueUSD Significant?
TrueUSD is significant as it offers a solution to one of the significant risks associated with cryptocurrencies – volatility. By tying the crypto to the US Dollar, it provides stability and certainty. In addition to this, TrueUSD is also known for its commitment to transparency, with the team providing regular audits, ensuring that their reserve holdings match the number of tokens in circulation.
How Does TrueUSD Work?
TrueUSD works by using a technology called TrustToken to create the stablecoin. Each TUSD token is backed by one US Dollar, which is held in a reserve account. When users want to buy TUSD tokens, they send USD to an escrow account. Once the funds have been verified, an equivalent amount of TUSD is minted and sent to the user’s wallet. Conversely, when users want to redeem TUSD for USD, the process is reversed. The tokens are burned, and the corresponding USD is released from the escrow account.
