In recent months it has been hard to ignore the buzz surrounding cryptocurrencies. Purported to be the next big thing not only in facilitating transactions but also as a financial asset in and of itself, the crypto market is growing at mind numbing speeds. With Bitcoin’s meteoric rise capping out at nearly $20,000 towards the end of 2017, it is not hard to realize why the technology has been receiving so much attention.
One of the biggest downsides to assets like Bitcoin, however, is they inspire little confidence in investors and are incredibly unpredictable as their value is simply based off of supply and demand for the cryptocurrency. A new wave of crypto assets, Stablecoins, are attempting to solve that problem by using either complex economic algorithms or backing their cryptocurrencies with real world assets like gold or fiat currency.
While the idea of Stablecoins is admirable and a positive direction for the industry to follow, recent execution has not been without its problems. Tether, an Ethereum based, US dollar backed Stablecoin is perhaps the best example of these woes..
While Tether has reached a market cap of over $2.21 billion , investors and markets are still wary of the currency as the assets backing Tether’s value remain relatively mysterious. This is where a new startup, TrustToken, is picking up the torch and offering TrueUSD as a stable and trustworthy alternative to Stablecoins currently offered on crypto markets.
TrustToken, in collaboration with Cooley and WilmerHale, as well as a network of numerous other compliance partners, has developed a proprietary legal framework that assures investors full confidence in their legal ownership of TrueUSD tokens.
Within this framework, TrueCoin has incorporated a network of fiduciary and banking partners that manage the 100% collateral in US Dollars that backs TrueUSD. . With these measures in place, TrueUSD offers its users a variety of enforceable legal rights as beneficial owners of the underlying funds, making TrueUSD the first trustworthy USD backed Stablecoin.
Another aspect of TrueUSD that sets it apart from competing crypto assets is its commitment to complete transparency for investors. TrueCoin provides monthly, transparent audits of its real world assets so that holders of TrueUSD tokens can be insured full confidence that their coin is worth what it should be. By adding all of these elements together, TrueUSD makes it easier to monitor and predict the value of their currency while also offering a comprehensive toolbox that ensures token holders that their crypto assets are safe.
The applications of the tools provided by TrueUSD help to turn the wild west of crypto trading into a more stable and mainstream market. The TrueUSD token can be used as a hedge for more unstable currencies like Bitcoin and Ether, allowing for managers to grow their portfolios in the cryptocurrency market without having to turn to traditional investments means to hedge their bets.
The TrueUSD token also allows investors to be able to more easily deal with trading values on exchanges by being able to price assets in terms of US dollars, rather than current exchanges where other unbacked Stablecoins serve as price indicators. This helps to streamline trading not only for large investors but also for the casual investor interested in entering the crypto marketplace. TrueUSD tokens offer users a simple and easy way to price their assets in terms they can quickly understand.
The value of the coin is based one of the most widely trusted assets in the world, the US dollar, and the legal structure of the startup is organized in a trust, a model familiar to financial institutions around the world.
TrueCoin’s platform also allows consumers to benefit from the safe and secure transactions, the driving idea behind the creation of cryptocurrencies, in a much simpler and more streamlined manner than ever before. Everyday people will be able to enjoy the lighting fast transaction speeds and ultra-secure payments that make cryptocurrencies attractive alternatives to fiat currency, while eliminating the volatility that scares many customers and businesses from adopting the technology.
As the rise of cryptocurrency and Blockchain technology continue to revolutionize the investment and transaction industries, it will be important in coming years to pay attention to assets that have real staying power. To gain traction amongst new adopters of the technology, however, the funds will have to retain some sort of predictability.
TrustToken and their new TrueUSD token accomplish just that, by providing a clear and trustworthy platform for crypto trading and transactions that make the process of engaging in the cryptocurrency marketplace easier than ever.
