In contrast to algorithmic stablecoins such as Basecoin or MakerDAO, which are protocol-based, TrueUSD is asset-backed. TrueUSD believes that while algorithmic options cater more towards crypto startups, asset-back tokens will be preferable to more traditional financial institutions. Stablecoins such as Tether also peg their cryptocurrency to the dollar, but the coin has become shrouded in controversy, with claims that the Tethers are not backed up with dollar reserves at a one-to-one ratio.