Explainers

What is TrueUSD (TUSD)? A Crypto Coin Study

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TrueUSD is a regulated stablecoin pegged to the US Dollar. It’s an ethical stablecoin, with real-time proof-of-funds visible in a secure escrowed account. It runs on Ethereum’s blockchain. How does it work, is it secure, and is it worth your time? Here’s what you need to know.

What Is TrueUSD?

Trading as TUSD and marketed as “The new face of money”, TrueUSD is aiming to become the new standard stablecoin in the cryptocurrency age. If you’re not sure how stablecoins work, take a look at our guide to stablecoins. TrueUSD is pegged to the US Dollar, so you can always redeem one TUSD for one US Dollar, providing the project still exists at the time of the trade.

Designed to let you buy or sell tokens with one-click, it’s tradeable on over 70 exchanges, and over 20 OTC trade counters. Various supporting projects claim to offer extraordinary interest rates upwards of 7.5%.

The TrueUSD Team

TrueUSD is managed by a company called TrustToken. This is allegedly made up of “…the best technical, legal, and financial talent around the world”. This includes former employees from Apple, Airbnb, Coinbase, Google, and more.

The company information page provides information about the core leadership team. TrustToken runs a variety of other stablecoin projects, encompassing both the Canadian Dollar and the Great British Pound.

The TrueUSD Values

The TrueUSD team has a published code of ethics. This outlines their commitment to ensuring every token is fully backed, stable, redeemable, and compliant with all relevant laws. TrueUSD hopes that by sharing this code of ethics, they can inspire and encourage other stablecoins in this industry to start adopting potential industry-standard best practices.

Every month they use a third-party certified public accounting firm to provide proof of funds. This transparency is key for a long-term stablecoin and should help avoid some of the issues plaguing projects such as Tether. Also, they will never manipulate the market price of any coin and will include controls to prevent this in any promotions.

TrueUSD will never stop you from redeeming TUSD for USD, no matter the amount. Finally, TUSD is compliant with all current regulations and will continue to follow any future financial regulations. They do this through enterprise-grade know your customer (KYC) and anti-money laundering checks, along with regular external audits.

This team operates under seven key values:

  1. Seek the Truth: We venture forward with curiosity, awareness, and empathy.
  2. Renaissance Ambition: We continually strive to become our best selves.
  3. Build Each Other Up: We embrace feedback to help us learn and grow.
  4. User Obsession: We see our products through the eyes of our users.
  5. Take Conscious Bets: We make thoughtful, informed decisions when faced with uncertainty.
  6. Make Good Things Easy: We create habits and systems to help us toward our goals.
  7. Get S*** Done: We move fast and have a bias for action over perfection.

This company ethos illustrates that TUSD is aiming to dominate the stablecoin space, and is in this project for the long term. They are not looking to make a quick profit, but believe they can offer a better, more reliable, and more trustworthy service than other providers have done thus far.

How Does TrueUSD Work?

TrueUSD works really simply. As a stablecoin, one TUSD is equal to one US Dollar. You can exchange TUSD for dollars, which get paid out of the TrustToken’s escrowed accounts. You’ll need to meet the stringent KYC requirements, so there’s no anonymity here, but the fact that the money exists at all should help you sleep easy.

TrueUSD operates as an ERC-20 token on Ethereum’s blockchain. There’s nothing too special about the code here, as ERC-20 based tokens are many. The best thing about TrueUSD is their approach to transparency, honesty, and integrity, as outlined above. The team “…wanted to build a stablecoin that we would use and trust ourselves”. TUSD has the potential to be everything Tether was going to be!

Where Can You Buy TrueUSD?

TrueUSD price graph

TrueUSD is available on a variety of exchanges. It’s available to buy on Binance, Bittrex, Bitfinex, and HitBTC, alongside many smaller exchanges. As of right now, there are limited trading pairs. Bitcoin and Ethereum trading pairs are the most common, but a small number of small token trading pairs exist. TrueUSD doesn’t yet have the reach and a staggering number of trading pairs that Tether has, but it’s easy enough to trade to Bitcoin or Ethereum first.

As you’d expect from a stablecoin, the price remains mostly stable. It reached an all-time high of $1.36 on May 16, 2018, and an all-time low of $0.93 just one month earlier on Apr 07, 2018. The TrueUSD team recommends you pay less than $1.05 per TUSD, as anything higher means you are likely to lose money when trading in tokens.

TrueUSD’s Future Potential

TrueUSD’s potential is massive. By aiming to become the benchmark stablecoin upon which all other coins get judged, and leading the market in ethics, security, transparency, and honesty, there will be a plethora of people who are happy to leave behind the wild west of other crypto projects. Finally, a coin that isn’t scamming you, or involved in dodgy antics (looking at you Tether).

That said, stablecoins are becoming more common now, and that means more competition for TrueUSD. The TrueUSD team has a great vision and ethos, but that doesn’t mean they can’t get outmaneuvered by a project with a bigger marketing budget, or a celebrity CEO.

Learn More About TrueUSD

If you’d like to get involved with TrueUSD, then take a look at these communities:

Make sure you join us on Twitter (@blocksdecoded) and let us know what you think of TrueUSD.

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Joe Coburn
Joe is a senior software developer with a degree in computer science from the University of Lincoln, UK. He is currently a Senior Writer for Blocks Decoded. Formerly, he was on the editorial team. As a writer at MakeUseOf, Joe has seen his work shared by Adobe, the Arduino Foundation, and Lifehacker. He has collaborated with Anker, BenQ, iStock, Ledger, Ultimate Ears, and many more. Joe loves all aspects of blockchain and cryptocurrencies, particularly the technical details.
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