While the idea has been around and generated excitement in tech circles for years, it is only recently that Blockchain technologies have entered the mainstream. While the decentralized ledger can be applied to solve problems in many industries, cryptocurrency has been its most popular application.
As Bitcoin closed out the year of 2017 with a value of over $14,000 a coin, it brought along with it a media firestorm and massive speculation about the future of crypto assets. Bitcoin subsequently fell dramatically in the first couple of months into the new year, proving that while the technology was popular, cryptocurrencies could not perform at their most efficient and stable if their value was to be governed only by supply and demand for the tokens.
The proposed solution to this volatility, and the next big trend in crypto, is a wave of Stablecoins. These cryptocurrencies promise their users stability through either complex economic models that help balance supply and demand, or by backing the crypto assets with real world assets like gold or fiat currency. Perhaps the most popular of these coins in recent months has been Tether, an Ethereum based, USD backed Stablecoin, but it is not without its problems.
In only a couple of months, Tether’s market capitalization has reached over $1.25 billion, yet investors and markets remain cautious of the asset as, due to transparency issues, it is not clear how exactly Tether is maintaining its value. On the other hand TrueUSD, a Stanford-StartX and Founders Fund backed stable coin project, is aiming to create a Stablecoin that not only solves the problems presented by traditional cryptocurrencies but also to streamline the experience for all users.
TrueUSD sets itself apart from other crypto assets primarily in that it is the first US dollar backed Stablecoin that is able to guarantee 100% collateral in fiat currency. Through a network of fiduciary and banking partners, TrueUSD will always be entirely backed by real US dollars. To ensure that users of the coin are able to remain confident in this, TrueUSD also offers one of a kind trustworthiness by way of transparent, monthly audits.
Every month, users of the platform will be able to look through the assets backing their tokens without barrier in order to ensure that their cryptocurrency is worth the proper amount. TrueUSD considers trust fundamental to building a proper crypto asset, and their transparency is unparalleled in the world of Stablecoins.
In addition to the measure the startup has taken to ensure transparency, TrueUSD has also worked tirelessly to improve on fund security for users of its TrueUSD token. In conjunction with Cooley and WilmerHale, the company has developed a proprietary legal structure based on a financial trust.
By using the TrueUSD platform, token holders will have enforceable legal rights to the funds, something not currently offered by any other Stablecoin on the market. In addition, the company has partnered with a network of compliance experts in order to help ensure users of the cryptocurrency that their assets will be not only stable but trustworthy.
TrueUSD has a variety of benefits that exceed what one should reasonably expect a cryptocurrency to be able to offer.One of TrueUSD’s advantages over other Stablecoins is that it gives users of crypto exchanges the ability to price assets in terms of USD.
In addition, TrueUSD’s unmatched stability and transparency make it a great option for crypto funds and investors looking to hedge more volatile bets or lessen exposures in cryptocurrencies like Bitcoin or Etherium without having to resort to traditional, real world assets.
TrueUSD also proves itself as a viable alternative to traditional currencies in both institutional and mainstream commerce. The cryptocurrency is the most accessible to date for financial institutions to date due to the trust it shares with real world entities. TrueUSD also helps streamline mainstream commerce as it offers all of the security, privacy, and transaction speed benefits of traditional currencies without having to sacrifice the stability of fiat currency.
As crypto markets continue to develop and the digital assets begin to gain traction amongst all types of investors, it is important for people to keep their eyes on which coins have the potential to make it into the mainstream. There is no doubt that TrueUSD, with its unparalleled transparency and security as well as its ease of use, will be a mainstay in the cryptocurrency market and a name to watch out for in the years to come.
