GAINS Associates
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GAINS Associates

TrustToken— Telegram QUIZ & AMA — May 26

On Tuesday, May 26, we had the pleasure to welcome to our Telegram chat:

Rafael Cosman, Co-Founder, and Head of Engineering of TrustToken, and
Jack Sun, Strategic Partnerships Manager of TrustToken.

We asked them questions about the development of TrustToken, ranked 53 on CoinMarketCap.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

TrustToken is behind the TUSD fully regulated stablecoin that is backed 1-for-1 with US Dollars. They have a 3rd-party accounting firm that attests to those underlying funds on a 24/7 basis.

TUSD Debit Cards are a part of the long term plan. They actually closed a partnership with VISA this year to prepare for this eventuality.

Their new product called TrueRewards is connecting TrueUSD to DeFi products to make it easy for users to start earning rewards directly on the $TUSD in their wallet.

They’re working on an open-source wallet that’ll allow mainstream users who aren’t as comfortable with crypto to easily access the high rewards rates that are available on stablecoins today.

They have 5 stablecoin products: TrueUSD (most popular product) as well as TrueGBP, TrueHKD, TrueAUD, and TrueCAD.

Introduction

Q — Alexandre R from GAINS: Can you guys tell us what you did before crypto, how you got into crypto, and if you’ve had any other venture in crypto previous to being involved with TrustToken?

A Rafael Cosman from TrustToken: Thanks for having us Alex. Before crypto, I worked at Google doing AI research. I started following crypto while I was an undergrad studying computer science but only started working in it as part of TrustToken. With TrueUSD, it was seeing Tether and how mistrusted it was that made us want to launch that product. Seemed like a very clear need that nobody was filling at the time.

Rafael Cosman, Co-Founder, and Head of Engineering of TrustToken. Previously at Google.

A Jack Sun from TrustToken: I’ve worked mostly in FinTech, first at Thomson Reuters, then at a startup in San Francisco called Juniper Square. In 2019, I was recruited to TrustToken by one of the founders.

Strategic Partnerships Manager at TrustToken

Q — Alexandre R from GAINS: Can you tell us what your role is at TrustToken?

A Rafael Cosman from TrustToken: Yep. I am one of the co-founders and head of engineering. Means I’m responsible for leading and growing our engineering team and helping to figure out how we’re going to build our upcoming products.

A Jack Sun from TrustToken: I currently work on the business development team. Managing some of our corporate relationships and seeking out new partners for TrustToken.

Q — Telegram user Igor: As far as I know Rafael, you founded Street Code Academy, One Salon, and Back Sphere. Does this experience help you in what you are doing now?

A — Rafael Cosman from TrustToken: Well those things were pretty different from making a crypto company. But I do think the leadership and technology aspects of those experiences help me now.

Product

Q — Alexandre R from GAINS: Can you tell us what the project is about in a few simple sentences?

A — Rafael Cosman from TrustToken: What the project is about- right now we have 5 stablecoin products: TrueUSD (our most popular product) as well as TrueGBP, TrueHKD, TrueAUD, and TrueCAD.

We’re soon going to be launching a product called TrueRewards which connects TrueUSD to DeFi and allows you to earn rewards on the TrueUSD in your wallet.

Q — Alexandre R from GAINS: How do you mint TUSD? It seems that USDT has just been created out of thin air recently.

A — Rafael Cosman from TrustToken: TUSD — it’s only minted when one of our fiduciary partners receives the corresponding USD. For example, if you create an account and then send in $10k to our partner Prime Trust, then you’ll have 10k new TUSD minted for you.

Here’s a short video series on TUSD and how it is minted and redeemed:

Q — Telegram user Roger Sandoval: Also, tell some details about the transparency of TrustToken’s stablecoins?

A — Rafael Cosman from TrustToken: Most of what we’re building is open-source. You can see the progress on TrustTokens and TrustToken Assurance here.

And the code for TrueRewards is here.

Educational videos on how our new products TrueRewards & TrustToken Assurance work:

You can actually get as much TUSD as you want. For example, if you create an account on our website and send in 1 million USD, you’ll get 1 million TUSD. If you send in 10 million USD, you’ll get 10 million TUSD. There’s no cap to how much TUSD can be minted. It’s just that it must always be backed 1-for-1 with US Dollars.

Q — Telegram user Ivan Petrov: Where do most of your clients come from. Are they mainly buying in with crypto or are they on-ramping via fiat?

A — Rafael Cosman from TrustToken: We as a company support people that want to mint and redeem TUSD with fiat US Dollars. If someone wants to buy TUSD with crypto, they go to a third-party exchange such as Binance.

Q — Telegram user Milton “Rockstar” Friedman: What parameters or conditions do you take into account to launch new stablecoins, as you have already done with TCAD, TAUD, etc?

A — Rafael Cosman from TrustToken: The biggest factor is how much demand there will be for the stablecoin. USD is the most widely used currency globally, and so USD-stablecoins will probably have a dominant market share for a while. But there still may be valuable smaller markets for other non-USD stablecoins.

Q — Telegram user Zunielis: How accepted have TCAD, TAUD, TGBP, and THKD been in their respective markets? Have you thought of creating a fiduciary model symbolic of a Latin American currency, such as the Mexican Peso ($) or the Brazilian Reais (R $)?

A — Rafael Cosman from TrustToken: Honestly it’s pretty varied. All are smaller than TUSD (of course) but of those, TAUD has the most adoption. We could do some Latin American currencies but are interested in first further growing the currencies we have.

Q — Telegram user Anisur Rahaman: Are there any limitations of using the TrustToken service, like IP restrictions, Country lock, etc?

A — Rafael Cosman from TrustToken: There are some limitations because we do need to stay fully compliant. Please visit our website and create an account for more details.

TrustToken’s website landing page :)

Q — Telegram user Sasha: There are situations when the price goes far above/below the peg. Why does this happen and can we get rid of it in the future?

A — Rafael Cosman from TrustToken: There are some deviations, but often not as much as it appears based on sources like CoinMarketCap. Sites like this have issues with their pricing mechanisms and the price shown there doesn’t always reflect the reality.

Q — Telegram user Blanca Sanchez: Having to relate to both a deregulated crypto world and the traditional financial sector, which is regulated? Has it caused you stress or worries?

A — Rafael Cosman from TrustToken: Yes this has definitely caused us stress and worry 😓. We both have to work with crypto companies such as exchanges but also need to be very compliant so we can work with US banks. It hasn’t been an easy job!

Security

Q — Twitter user CheiA: Most people see the cryptocurrency world as pretty wild and woolly. Is @TrustToken as safe as claimed?

A — Rafael Cosman from TrustToken: People do still see crypto as pretty wild and woolly. Our stablecoin products such as TrueUSD are quite safe: TUSD is backed 1-for-1 with US Dollars and we have a 3rd-party accounting firm that attests to those underlying funds on a 24/7 basis.

A lot of our effort so far has gone into providing all the legal and technological safeguards that stablecoin users want to know they’re secure

Q — Alexandre R from GAINS: Where can we check these audits or reports from that 3rd-party accounting firm?

A — Rafael Cosman from TrustToken: You can check it out from here and here.

There’s even more USD than TUSD. Some safety margin.

Q — Telegram user Crypto Devil: Can you share some details about the transparency of TUSD stablecoin, as recently many news articles claim that some stable coins are not fully backed with USD!

A — Jack Sun from TrustToken: Check out the blog where we post updates on attestations!

Competitive Advantage

Q — Telegram user Louie: When it comes to stablecoins, USDT is the King. What are your plans to keep in step with USDT? How can you dethrone USDT from the top?

A — Rafael Cosman from TrustToken: Good question. While USDT is a lot bigger than TUSD, we are serving a somewhat different market. There are a lot of folks that don’t trust $USDT, or for regulatory reasons can’t use USDT. The competitor that’s closer to our market is actually USDC.

Business Development

Q — Twitter user Caner: Can you share with us some of your future plans, such as the marketing development plan and recent activity plan for the $TUSD team?

A — Rafael Cosman from TrustToken: We’re working on an open-source wallet that’ll allow mainstream users who aren’t as comfortable with crypto to easily access the high rewards rates that are available on stablecoins today. One of the major things that is driving usage of stablecoins today is the high interest rates available, and we think there’s an opportunity to bring a lot more users and capital into the space.

Q — Telegram user Rahul: What features are built into the Trust Token to support DEFI?

A — Rafael Cosman from TrustToken: Our new product called TrueRewards is connecting TrueUSD to DeFi products to make it easy for users to start earning rewards directly on the $TUSD in their wallet. But one of the main issues with DeFi is that people have a hard time assessing the risk. So we’re also going to be launching a system that helps with that!

Q — Alexandre R from GAINS: Right, would any $TUSD holder automatically get interest just from holding it in their wallet?

A — Rafael Cosman from TrustToken: Not quite… they would have to opt-in, and they would be choosing a rewards opportunity (e.g. AAVE, Compound, etc.). There would be some risk as well, and we’d make that clear to users when they choose to opt-in.

Q — Alexandre R from GAINS: Why do you think the rates are so high and do you have numbers?

A — Rafael Cosman from TrustToken: Ultimately interest rates are set by supply and demand of capital to borrow. If there is a lot of demand to borrow stablecoin and not enough people willing to lend, then rates will go up.

If there are a lot of people looking to lend and not enough demand to borrow, then rates will go down. Part of what’s happening is that there are a lot of miners and whales looking to borrow against their crypto holdings. Primarily BTC, and to a lesser extend ETH.

There are also some folks willing to lend out stablecoin in exchange for crypto collateral. But there isn’t enough capital to meet the demand because big banks haven’t moved in yet. In most markets, the big lenders are banks (e.g. JPMorgan, Citi Bank, etc.), but right now very few banks are comfortable enough with crypto to do lending in the space.

QTwitter user Jack Fergi: What are your plans to educate and raise awareness and adoption among the community to make more people understand TrustToken and its technology?

A — Rafael Cosman from TrustToken: In addition to doing AMAs like this (thanks to the community and the organizers for inviting us!), we’re making a series of educational videos that explain TrustToken and our technology. We’ve already released a bunch on our YouTube channel and have more coming out soon!

Q — Telegram user Mini Sonic: What are TrustToken’s top priorities? And what steps will be taken in the future?

A — Jack Sun from TrustToken: Our main priorities are two-fold.

1. The continued transparency of our TrueCurrency — stablecoins

2. The TrueRewards upgrade we are making to make interest returns available to all TUSD holders.

Q — Telegram user Matvey Morozov: Any plans on rolling out TUSD debit cards in the future?

A — Jack Sun from TrustToken: Debit Cards are a part of the long term plan. We actually closed a partnership with VISA this year to prepare for this eventuality.

Rafael and Jack, thanks a lot for coming in today and telling us more about TrueUSD! It’s great to hear about how open source it is, about the 3rd-party accounting firms that ensure you have the USD funds and about the new products you’re going to launch, integrated with DeFi. Keep it up on the education side. It’s always great to learn.

Anything else you’d like to say? Where can we follow TrueUSD? Alexandre R from GAINS

GAINS community members can keep in touch with us on Twitter or Facebook. However, the best & most updated content can be found directly on our blog. Feel free to join the mailing list if you’d like to get updates on our various projects! — Jack Sun from TrustToken

You can also subscribe to our YouTube channel. We would love to have you come and join our communities! Also- we’re fully remote and are hiring globally, so if this is the sort of thing you’re interested in building together please apply! — Rafael Cosman from TrustToken

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun and knowledgeable community!

If you want to email us: contact@gains-associates.com.

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GAINS Associates provides you with the latest news and research in blockchain and crypto. It’s a community for everyone to learn and grow together.

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