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What is TrueUSD?

TrustToken, with their flagship token TrueUSD, is a network to create stablecoins, cryptocurrencies pegged to tokenized assets.

TrueUSD is backed by USD, based on the Ethereum network ERC-20, fully collateralized, legally protected and transparently verified by third-party attestations.

Third-party escrow accounts are the key to the creation of TrustToken. The client needs to go through anti-money laundering and know-your-customer regulatory requirements and wire the desired amount of USD to an escrow account. In return, TrueUSD is minted.

They anticipate making further coins such as TrueEUR and TrueBond, which will be additional asset-based tokens, to be listed on global exchanges for efficient global change.

Currently, the minimum amount 10.000 USD to purchase TrueUSD, and the open source smart contract ensures 1:1 parity.

The coin is perfect for financial services, crypto traders, exchanges and commerce, ensuring the transaction speed, without the volatility of usual cryptocurrencies.

Partnerships and Beta Products Since ICO End

The ICO of TrustToken has ended on 31st August, and they have been busy extending their network of partners and has been listed on multiple exchanges. Their accounting partner Cohen & Company is providing regular attestations on the TrueUSD coin.

Exchanges:

  • Bittrex
  • Binance
  • UPbit
  • Cryptopia
  • Cointiger
  • HitBTC
  • HBUS
  • DigiFinex
  • BitInka exchange
  • Republic RenEX

Partnerships:

Info, News and ICO Results

The token sale, which ended on 31st August 2018 and received $21.7 million USD. The token is a stablecoin and is an Ethereum ERC-20 based token. 1 TrueUSD traded for 1 USD. Currently, TrueUSD is trading at $1.05, with the total market cap at $144 million USD, with a steady growth compared to Ethereum and Bitcoin.

Community Around TrueUSD:

  • Telegram: 6.2K Members;
  • Twitter: 7.4K Members;
  • Facebook: 650 People Follow It.
  • Reddit: 554 Subscribers;

In the news we could see:

Read the full TrueUSD blog here: https://blog.trusttoken.com/

Competition

There are several other stable coins on the market, let’s see some competing securities:

Maker Dai

  • Use of algorithms to maintain stability;
  • Individual market targeted;
  • Market cap $490 million;

Tether

  • Most widely integrated;
  • Controversial past and concerns about exact fiat currency backing it up;
  • Market cap $2.4 billion;

While Maker Dai targets mostly individual customers, TrueUSD is aimed more at institutional investors. While in market cap Tether is leading, they lost the trust of the audience with rumors about their backing funds.

Find more information here: https://blog.trusttoken.com/trueusd-faq-18dbc563fb67

The Team

The team at TrueUSD is rapidly expanding, currently counting 17 people according to their website, and 38 on Linked.

The 4 founders are:

  • Danny An, CEO– bringing experience as a Data Scientist from Kernel, and from PWC as Product Manager, gained a Bachelor degree from the University of Texas.
  • Rafael Cosnan, CTO– an expert at Machine Learning technologies, previously founded StreetCode Academy, the non-profit tech club in Palo Alto. Studied at Stanford University.
  • Stephen Kade, COO– with diverse experience as co-founder at NeuroTechX and as Commercialization Project Manager at Kernel. He has a Bachelor’s degree from UC Berkeley from Neuroscience and Economics.
  • Tory Reiss, Partnerships and Corporate Development– was CEO and co-founder at Harvest Money, with business development experience from Microsoft and Lob. He has a Bachelor’s degree from Northwestern University.

Advisors

Find more information about the team at TrueUSD here, or watch a video of the founders telling you about their project.

PRO

  • Unique structure with escrow backed securities +3
  • New target for institutional users +2
  • Not just coin, but a platform to launch security backed asset tokens +3
  • Growth since entering the market +2

CON

  • Unsteady regulatory environment -2
  • Low public trust -1

Considerations About What We Have Seen

TrustToken and the TrueUSD is a great project, which has 2 key points: the unique escrow-based security system, the diversity of the platform for other assets. With their strategy to target institutional users, they are aiming for a yet barely covered market by stablecoins. They have been successfully growing since entering the market, which for any coin is a significant achievement.

When we look at the broader market there are 2 major threats: the regulatory environment and competition. The bigger of 2, the regulatory environment can make it or break it for the whole market of security coins. Currently, government agencies and financial institutions are progressing in establishing their stand and control for stablecoins.

There is definitely some competition on the market, such as Tether and MakerDai. However, with the recent mistrust around Tether, and the different focus of MakerDai, TrustToken brings a unique value. As there are plenty of regulation and certifications to establish a stablecoin, it might be a harder market to enter for new competition than with utility tokens.

As per the regulatory environment and the recent developments with Tether, public trust in stablecoins is lower than what is ideal.

Although there is a great potential behind TrustToken, and the product seems great, it might be better to wait for advances in regulations. As it is intended to hold its value, it might not be the best investment, rather a great tool for transactions.

Tokeninvestoronline.com rating: 7/10

Contacts

By Barbora Juhaszova