Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


Is TrueUSD (TUSD) the best Tether alternative?

Mr. Market thinks TrueUSD (TUSD) could be the best Tether (USDT) alternative among stablecoins.

To explain, on 17 November 2021 CoinMarketCap named TrueUSD the sixth largest stablecoin by marketcap. They gave TrueUSD a $1.263 billion Market Capitalization and a 24-Hour Market Volume of $155.064 million. In contrast, the number one stablecoin Tether (USDT) had a Market Capitalization of $73.803 billion 24-Hour Market Volume of $84.999 billion on the same day.

Hence, some investors and speculators like TrueUSD (TUSD), so what is it? TrueUSD’s builders claim their product is the world’s first regulated stablecoin backed by US Dollars.

What is TrueUSD (TUSD)?

TrueUSD (TUSD) is a stablecoin built by an organization they call TrueUSD. TrueUSD claims to have a close relationship with the Trust Token cryptocurrency.

They built TrueUSD (TUSD) with the Avalanche (AVAX) smartchain blockchain. Like all stablecoins, TrueUSD contains a smart contract that makes payment in fiat currency from a custodian bank trust account when users spend it.

TrueUSD integrates with Signature Bank’s blockchain based payment platform Signet to make US Dollar payments. Signet is an Ethereum (ETH) based payments platform.

Signature Bank claims to be one of the top 25 largest banks in the United States. Signature claims Signet is the first blockchain payments platform approved for use by the New York State Department of Financial Services.

Signature Bank provides commercial banking, private banking, wealth management, custodian bank, and payments services through offices in New York City, Connecticut, New York State, California, and North Carolina. Signature appears to cater to High Net Worth Individuals (rich people).

However, there is no evidence Signature Bank accounts hold the US dollars they peg TrueUSD (TUSD) coins to.

TrustToken and TrueUSD

TrustToken is an organization that builds blockchain decentralized finance (DeFi) solutions. Those solutions include TrueFi and TrueFX. TrustToken’s website identifies TrueUSD (TUSD) as a TrustToken project.

TrueFi is a DeFi protocol designed for uncollateralized lending with TUSD. They claim TrueFi enables users to borrow without collateral. TrustToken also claims TrueFi users can earn high yields on stablecoin loans.

In contrast, TrueFx is a stablecoin basket that contains all four of TrustToken’s stablecoins. The TrustToken stablecoins are TUSD, TGBP (British pound), TAUD (Australian Dollar), TCAD (Canadian Dollar), and THKD (Trust Hong Kong Dollar).

They also claim that TrueUSD integrates with the TRON blockchain. Hence, TRueUSD is live on TRON’s platform. TRON is a scalable blockhain built to integrate with the Internet of Things (IOT). TRON claims to be the world’s fastest-growing public chain with over 62 million accounts that have processed over 2.5 billion transactions.

TrueUSD also claims to work with big companies including Airbnb (NASDAQ: ABNB), Snap Inc., Google (GOOGL), CoinBase (COIN), Facebook (FB), and Apple Inc. (AAPL), TrueUSD claims to have offices in London, Berlin, New York, San Francisco, Los Angeles, Geneva, Chicago, Boston, New Delhi, Singapore, Hong Kong, and Houston.

Meet TrueUSD (TUSD)

The TrueUSD (TUSD) is a stablecoin that operates on the Ethereum (ETH), Avalanche, Tron, Binance, and Binance Smart Chain (BSC) blockchains.

TrueUSD users can mint new TUSD by depositing US Dollars through the TrueUSD homepage. Users can also hold TrueUSD as a hedge against crypto market volatility. They claim you can trade TUSD on over 70 exchanges, in over 160 markets, and in over 20 over-the-counter trading desks on five continents.

In addition, users can stake, farm and mine the TUSD DeFi platform. The TrueUSD DeFI platform operates on the Ethereum, TRON, and Binance Smart Chain blockchains. Hence, you can you buy TrueUSD with Ethereum (ETH), BSC, ERC-20 cryptocurrencies, and BSC cryptocurrencies.

What Value Does TrueUSD (TUSD) have?

Mr. Market thinks TrueUSD (TUSD) has some value. CoinMarketCap gave TUSD a Market Capitalization of $1.263 billion, a Fully Diluted Market Cap of $1.263 billion, and a 24-Hour Trading Volume of $155.064 million on 17 November 2021.

They based those numbers on a Circulating Supply of 1.26 billion TUSD and a Coin Price of $1. CoinMarketCap estimates TrueUSD was the 90th largest cryptocurrency on 17 November 2021.

 In comparison, CoinBase gave a $1.3 billion Market Cap, a $155.6 million 24-Hour Market Cap, and a Circulating Supply of 1.3 billion TUSD on the same day. I think TrueUSD shows stablecoins are not stable because CoinBase notes TUSD had an all-time high Coin Price of $1.36. However, TrueUSD could be more stable than Tether (USDT).

TrueUSD (TUSD) vs Tether (USDT)

Notably, TrueUSD’s claims of being regulated by New York State contrast with allegations they not peg Tethers (USDT) to US Dollars.

To explain, some critics, including Bloomberg, allege they back Tethers with debt, including questionable Chinese commercial paper, instead of US dollars. Bloomberg claims the US Federal Reserve and the US Treasury Department are investigating Tether because of those allegations.

To explain, if Bloomberg’s allegations are true, Tether could issue more stablecoins than dollars. Hence, Tether could run out of money and not be able to cover all the USDT transactions.

Thus, more speculators are seeking Tether alternatives. I think TrueUSD (TUSD) could be an excellent Tether alternative because it is government regulated and linked to a bank. Expect to see more money flow into TrueUSD and other alternative stablecoins as questions about Tether grow.

I think TrueUSD has an advantage over Tether because TrustToken is building stablecoins for other fiat currencies. For example, TGBP for the Pound Sterling. Hence, TrustToken could expand if cash flees dollars for other fiat currencies. Hence, one solution I think they will need is a TrustToken for the Swiss Franc.

Consequently, I advise smart speculators to hold over one stablecoin. I believe stablecoins are the future of cryptocurrency and digital payments, but they are not stable.