Tethers Have a Competitor: TrueUSD (TUSD) Promises Audited Fiat Backing
USDT trading sees a competitor, as tokens move to replace or represent fiat in Bitcoin trading pairs.
Tether (USDT) tokens are now an integral part of crypto trading. Tokenizing fiat positions has turned out to be technologically more convenient, especially in moving assets between exchanges. But the price distortion and the liquidity afforded to Bitcoin without the proven investment of real fiat is worrying.
New Asset: The True USD, TUSD
Now, after months in the making, the TrustToken project announced the launch of trading for a totally new fixed-price token, True USD. The TUSD/BTC pair has been listed on Bittrex, trading in parallel with USDT. The issuer of TUSD is the TrustToken platform, which claims that users who have passed KYC/AML procedures would be able to switch their TUSD tokens to fiat at any time.
In theory, the TrustToken project reminds users that they can take a fiat position by switching from Tethers to TUSD, by going through BTC. In the first weeks of trading, the price of TUSD is expected to fluctuate by 5% before settling.
TUSD has a total supply of 4,761,925 tokens, against more than 2.1 billion tokens for USDT. At this point, the original token remains much more influential, especially after the withdrawal of dollar-based buyers, and the shrinking of GDAX volumes.
The creation of TUSD tokens allegedly happens after they are bought by registered users, and distributed via an Ethereum smart contract. At the moment, the project is open to early-access buyers from funds and large trading entities.
The biggest advantage of the newly traded token will be the regular audits, starting with an attestation from March 1 by Cohen&Co. At the moment, the Escrow account of TrueCoin LLC, the entity behind TUSD, holds $4,777,750.
None of the funds entered into the escrow account become the property of the token issuer. The TrustToken project will aim to create other tokens based on the value of real-world assets.
Tethers Keep Affecting the Markets
The Ethereum-based USDT are on the move, with tens of thousands sent in the past hours, and at one point, over 1 million tokens in one transaction. EURT tokens so far have not been moved so actively.
At the moment, Binance leads the USDT trading with upward of 539 million tokens having found their way into the exchange, followed by Bittrex with more than 388 million tokens. Tethers are the second most traded asset on the market, with 13.46% weight of total trading volume.