TrueUSD TUSD Price

What is TrueUSD (TUSD)?

TrueUSD (TUSD) is a stablecoin that is pegged to the US Dollar, designed to maintain a 1:1 value with USD. Launched in March 2018, TrueUSD is part of the stablecoin sector which aims to provide a stable medium of exchange in the volatile cryptocurrency market. It is backed by actual US Dollar reserves held in escrow accounts and is regularly audited to ensure that the amount of TUSD in circulation is always matched by an equivalent amount of USD held in reserve. As of early 2024, TrueUSD has gained significant traction, with a market capitalization of approximately $1 billion, making it one of the top stablecoins in the market.

Who are the Founders of TrueUSD?

TrueUSD was founded by a team of experienced professionals in the cryptocurrency and finance sectors. The project was developed by TrustToken, a company founded by Rafael Cosman, Danny An, and Stephen Kade. TrustToken aims to create a framework for tokenizing real-world assets, and TrueUSD serves as its flagship product. The founders have a background in technology and finance, with experience in various roles at companies like Google, Stanford University, and others, contributing to their understanding of both blockchain technology and traditional finance.

How does TrueUSD Work?

TrueUSD operates on the Ethereum blockchain as an ERC-20 token, which means it leverages Ethereum's robust infrastructure for transactions. The process of minting and redeeming TUSD involves several steps:

• Issuance: When a user wishes to purchase TUSD, they deposit USD with an authorized TrustToken partner. After verification, TUSD is minted and sent to the user’s wallet.
• Redemption: To redeem TUSD for USD, users send their TUSD to the TrustToken smart contract. Once the transaction is confirmed, the equivalent amount of USD is sent back to the user’s bank account.
• Transparency: TrueUSD employs third-party attestations to provide transparency, allowing users to verify that the amount of USD backing TUSD is always equal to the number of TUSD in circulation.

Top Use Cases of TrueUSD

TrueUSD has several use cases that make it valuable in the cryptocurrency ecosystem:

• Trading Pair: TUSD is commonly used as a trading pair on cryptocurrency exchanges, allowing traders to move in and out of positions without converting back to fiat currencies.
• Remittances: Individuals can use TUSD for cross-border remittances, offering a cheaper and faster alternative to traditional banking systems.
• DeFi Applications: TUSD is widely utilized in decentralized finance (DeFi) platforms for lending, borrowing, and liquidity provision, allowing users to earn interest on their holdings.
• Hedging Against Volatility: Investors can use TUSD to hedge against the volatility of other cryptocurrencies, providing a stable store of value during market fluctuations.
• Payments: Merchants accepting TUSD can benefit from lower transaction fees and faster settlement times compared to traditional payment methods.

How to Keep your TrueUSD Safe?

Keeping TrueUSD safe involves several best practices:

• Use Reputable Wallets: Store your TUSD in secure wallets, preferably hardware wallets or trusted software wallets that offer robust security features.
• Enable Two-Factor Authentication (2FA): Whenever possible, enable 2FA on your wallet and exchange accounts to add an additional layer of security.
• Keep Private Keys Secure: Always safeguard your private keys and recovery phrases. Never share them and consider using a password manager for added security.
• Be Cautious with Phishing Attacks: Be vigilant against phishing attacks and do not click on suspicious links or provide sensitive information to unverified sources.
• Regularly Monitor Your Holdings: Keep an eye on your TUSD balance and transaction history to quickly identify any unauthorized access.