TrueUSD vs Tether: Stablecoin Comparison
What is Tether?
Tether is the most known stablecoin from the crypto space, which claims to have its value pegged to that of the US Dollar at a 1:1 ratio. The original idea was to have for each USD in circulation an equivalent amount of Tether.
What is TrueUSD?
TrueUSD is a stablecoin which is also tied to the price of the US dollar. It is issued by TrustToken, a platform that enables developers to create and issue their own asset-world backed tokens.
TUSD vs USDT: Popularity
USDT has more popularity when compared to TUSD, as the former coin has been present on the market for much longer, being launched in 2018 and gradually increasing in market cap, making it among the top 30 coins within the crypto industry.
TUSD vs USDT: Controversies
USDT has been surrounded by many controversies and fraud allegations, such as not having backing for all the Tether they issued. All these controversies have generated immense amounts of doubt and fear within the community which is noticeable in the coin’s fluctuating market cap.
There have also been allegations connecting the USDT token and Tether Limited to Bitfinex with regards to a case of market volume manipulations as frequent pumps and dumps of Bitcoin have coincided with USDT being issued in large amounts.
The TUSD coin is backed up by the US Dollar and it is fully collateralized, legally secured, and verified by third-party auditors in a transparent manner. The TrustToken platform has legal partnerships with legitimate financial organizations and institutions that keep their USD holdings in escrow.
Another issue that does not favor Tether is the fact that Tether Limited has undergone any official external audit, unlike TrustToken which frequently publishes its audit results.
TUSD vs USDT: Token structure
TUSD is issued by the Ethereum blockchain, being an ERC-20 token which means it is compatible with other wallets and apps that support tokens based on the ERC-20 protocol.
You should know that Tether, known by its ticker USDT, is a crypto coin based on the protocol issued on Bitcoin’s blockchain, the Omni Layer Protocol.
TUSD vs USDT: Security
TrueUSD keeps its funds in an escrow system which blocks all third-party interference of any kind. This results in a high amount of reliability when it comes to. The escrow accounts are verified on a regular basis by a third-party auditing firm, thus ensuring their impartiality in the matter. This makes TUSD seem more reliable and open when compared to USDT.
All TrueUSD tokens benefit from being fully collateralized by USD, and they are kept in the escrow account of a professional trust company.
Also, all investors that wish to purchase any TUSD tokens must go through a mandatory KYC/AML before they are able to go through with the buying process. This makes every transaction transparent.
Regarding USDT, their fiat funds are supposedly ensured and protected by various security levels.
TUSD vs USDT: How do they work
To maintain its value constant TrueUSD mints a certain amount of cryptocurrency tokens when a wire transfer is placed, and they burn the tokens when they are converted into fiat currency respectively.
After the TrueUSD transaction has been initiated, a smart contract is then generated, which contains all the relevant details regarding the respective transaction and has the task of minting the tokens and sending the respective amount to the recipient wallet.
The TrueUSD tokens received are redeemable for the correspondent amount of fiat currency. When converting the tokens into fiat currency, another smart contract will be created, and this one burns the tokens. The bank is notified about this burning, and then sends the USD directly to the user’s account.
TUSDT vs USDT: Price and Ranking
In terms of trading price, both tokens are not that far apart from USD’s value.
The TUSD currently has a price of $1.02 and a market capitalization of $207,218,977 while the USDT has a value of $1and a market capitalization of $2,026,095,904.
USDT currently ranks 7th, while TUSD is placed in 26th position.
Considering how volatile the crypto market can be, there is a need for stability which has materialized in the creation of stablecoins such as TUSDT and USDT. But more and more of this type of coins appear on the market, and only time will tell which one will remain standing.