Nauticus Supports TrueUSD As Tether’s Rightful Heir
When Nauticus Exchange was surveying the stablecoin landscape, looking for the most trustworthy token to offer customers at launch, we settled on TrueUSD.
Due to market share, it’s not the most obvious choice, as Tether (USDT) has dominated stablecoins for the past four years.
But the chorus of doubts over Tether’s reliability has become deafening in recent months, with many harbouring grave doubts over whether it does really hold one US dollar for each Tether it creates.
In October, it crashed to 85 cents as speculation reached fever pitch. The US Department of Justice has also just announced an investigation into whether market manipulation by Tether and its parent exchange Bifinex was responsible for the massive Bitcoin price spike of late 2017.It’s the latest in a long line of red flags against the currency which is yet to produce a genuinely independent audit.
TRUEUSD: A STABLECOIN YOU CAN TRUST
TrueUSD by contrast is an ERC-20 stablecoin, where every token has been proven to be backed by a real US dollar and verified by trustworthy third parties.
It’s the first asset token built on the TrustToken platform, which aims to create asset-backed security tokens that can be bought and sold internationally.
To increase transparency, TrustToken doesn’t hold any US reserves themselves, instead they’ve partnered with banks and financial institutions which hold the required dollars in escrow. These funds are cross checked by Cohen & Co auditing firm to ensure they tally up. Users can create their own TrueUSD simply by passing KYC and wiring US dollars to one of their third-party partners. The smart contract will then mint TrueUSD and send it to your Ethereum wallet.
To redeem TrueUSD, send the TUSD back to TrustToken, the smart contract burns the TrueUSD and sends USD back your bank account.
CRYPTO MARKET SHOWINGS SIGNS OF TETHER ABANDONMENT
The move towards Tether alternatives has gathered pace this year, with 23 stablecoins in the market and 57 more in development.
The major competitors are True USD, Paxos Standard Token, Gemini Dollar and the USD Coin.
Big exchanges including Huobi, Binance and Coinbase have added support for one or more of each.
There are encouraging early signs that users are moving to TrueUSD — and the stablecoin was a big winner recently when investors were seeking a safe haven from the turmoil caused by the Bitcoin Cash fork.
TRUEUSD: TETHER’S RIGHTFUL HEIR?
In the days afterwards, TrueUSD almost doubled its market share from 0.6% to 1.0. It’s fast closing in on the second most popular stablecoin Pax, which at 1.3% is just a few points ahead.
There’s still a long way to go before anyone threatens the dominance over Tether, but its widely agreed the time is right for an alternative that is reliable and trustworthy.
Nauticus recently signed an agreement to engage in co-marketing with TrueUSD to help spur its adoption.
Originally published at nauticus.exchange on November 29, 2018.