Review on TrueUSD by Amit Singh
Currently, TrueUSD is backed by the USD. In the future, TrueEuro, TrueYen and…
Currently, TrueUSD is backed by the USD. In the future, TrueEuro, TrueYen and stable baskets of tokenized goods (including precious metals and real estate) may be developed. The plan is for individuals to be able to create their own baskets of tokenized goods, with the market deciding which assets are the best stable currencies.
The long-term goal for TrueUSD is to become a stablecoin that the industry can trust.
Pros
- TrueUSD is a stablecoin that is fully collateralized by the USD dollar, meaning that that each 1 TUSD is redeemable for $1.00 USD. It also offers legal protection and full transparency. The company behind it, TrustToken, allows the development of asset-backed tokens that can be bought and sold around the world. TrueUSD is the first asset token created on the TrustToken platform.
Cons
- TrueUSD tokens are always backed by the same number of dollars in the escrow account used to collateralize the tokens. Ensuring this 1:1 parity maintains that the tokens are redeemable, which is necessary to maintain each TrueUSD as equal to $1.00.
