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Review on TrueUSD by Alicia Winter
TrueUSD is an ERC20 stablecoin that is claimed to be “fully collateralized…
TrueUSD is an ERC20 stablecoin that is claimed to be “fully collateralized, legally protected and transparently audited.” It is issued only against existing fiat reserves held by a central issuer, using multiple escrow accounts to reduce counterparty risk and to provide token holders with legal rights to the funds.
Pros
- The market has proven that there is a strong demand for a reliable pair of transactions between electronic money and US dollars. The presence of TrueUSD on Bittrex meets that need. It has the stability of a fiat currency and the efficiency of a blockchain-based cryptocurrency with fast, cheap and traceable transactions
Cons
- hese TrueUSD tokens you now hold are effectively certificates that can be redeemed for fiat USD. To redeem them, you send TrueUSD tokens back to the TrustToken, which activates a smart contract that will burn the amount of tokens you wish to exchange. TrustToken then notifies the bank holding the corresponding amount of USD in escrow, and they wire the USD directly to your bank account so i fell inconvenience
