CEO Danny An told CNN:
“The most recent curved will support the development of the TrustToken asset tokenization platform, for assets that may comprehend currencies, equities, real estate, and more. The funding will also get allocated toward the dilation of TrustToken’s legal, partnership, product, and engineering departments.”
TrueUSD got off to a certain start on Binance after their May listing which saw the value of the stablecoin pass 40% to trade at $1.40 before stabilizing again, obviously a gigantic problem for a currency designed to match the dollar.
An stated that return bots were to blame for the spike, designed to snap up newly-listed currencies regardless of assay – because they had not been programmed to ignore the stablecoin they accumulated in largeness even as the price began to climb, despite the lack of incentive to do so. The crew was able to regain control of the price before long, although there was a hold up in the launch as the issue was investigated.
An told CCN that the team has taken gages to further protect the currency value:
“We’ve begun outreach to inform brokers to avoid buying any TrueUSD priced far from $1 dollar. Here’s an norm of our published content for educating traders. Generally, as awareness for TrueUSD’s redeemability for $1 dollar snowballs, stability will also increase. It does not make much brains to pay more than $1 for something that is essentially a claim for $1 surely.”
With things under control, An is describing big plans for the stablecoin, turn that the US dollar is not the only currency TrustToken have their eyes on. “We’ve been zero ined on TrueUSD since its launch three months ago because there has been steady demand for a trustworthy, fiat-backed stablecoin. In just three months, the exchange cap of TrueUSD (TUSD) has grown to over $60 million. The next not harmonious with would be tokenizing other currencies such as the Euro.”
TrueUSD rivals Manacle as the only other fiat-backed stablecoin on the market. Both projects upon to reserve $1 USD for every token they issue, and to burn a mark for every dollar they return to investors cashing out. By collateralizing the currency with fiat, the party can ensure that investors can always cash out large amounts without smashing the price, allowing traders to preserve the value of their holdings during a market taper off and to enter the market without immediate exposure to the price volatility interviewed in Bitcoin and altcoins.
Tether, however, has been mired in controversy since stir their auditors and refusing to release financial statements demonstrating to investors that they deep down have the collateral to back the coins. If the project has been issuing unbacked emblems, a sudden mass withdrawal could collapse the project entirely as Down would be unable to cash everyone out, leading to a death spiral in the currency value that liking create a shockwave throughout the entire market.
The main difference between TrueUSD and Cord (the only other fiat-backed stablecoin in market) is that TrustToken does not waylay any of the funds received when TrueUSD gets purchased. TrustToken offs with licensed trust companies that already manage billions of dollars to magnanimous up an escrow account on behalf of TrueUSD token holders,” said An.
Featured mental picture from Shutterstock.
Follow us on Telegram.
• Join CCN’s crypto community for $9.99 per month, click here.
• Poverty exclusive analysis and crypto insights from Hacked.com? Click here.
• Unfenced Positions at CCN: Full Time and Part Time Journalists Wanted.
Bill
