TrustToken Launches TrueUSD Stablecoin on Bittrex Exchange

Last year saw the meteoric rise of cryptocurrencies like Bitcoin and Ethereum, which grew at rates even the biggest crypto optimists of 2016 couldn’t have predicted. While the excitement that has been generated by these crypto assets has brought a wave of new investors and enthusiasts to the technology, cryptocurrencies still remain in their infancy.

At their heart, cryptocurrencies are supposed to be safe, quick, and secure alternatives to fiat currencies and other traditional methods of transactions. Unfortunately, their unpredictable prices prevent them from going mainstream.

Stablecoins are the most promising answer to this problem. Stablecoins aim to retain a fixed value, such as reflecting the US Dollar. The most widely used stablecoin on exchanges today is Tether. Tether has said it is pegged to the US Dollar, but has not produced audits for token-holders in almost one year. As Tether quickly reached a market cap of $2.2 billion, traders have become wary of its unbacked tokens and have been awaiting more trustworthy alternatives. One of the startups poised to bring this trust to the stablecoin market is TrustToken.

TrustToken, a company based in San Francisco, has created a new stable cryptocurrency that they say is 100% guaranteed to be collateralized in US dollars: TrueUSD (TUSD). The company has developed a proprietary legal structure and offers regular audits to foster trust for TUSD token-holders.

On Monday, TrueUSD launched on Bittrex, which is currently the largest cryptocurrency exchange in the United States.

TrustToken has developed a large banking and fiduciary network to make sure that all tokens built on its platform such as TrueUSD can be consistently collateralized and have an independent attestation. These dedicated partners help ensure that fiat currency can flow in and out of TrueUSD’s holdings as supply and demand changes. Overall, TrueUSD’s guarantee will be able to provide stability and trust on a level never before seen in cryptocurrency markets.

TrustToken has collaborated with law firms Cooley and WilmerHale to create a trust-based proprietary legal framework. Additionally, TrueCoin has been able to guarantee a regular, monthly, and transparent attestation of the TrueUSD finances that will be available to all parties interested in the currency.

As more cryptocurrencies debut each day, it is important for investors and consumers alike to be on the lookout for what makes a good cryptocurrency. While speed, safety, and security are all important factors that make the technology favorable to fiat transfers, instability keeps the technology from reaching the public. It will be especially important to keep your eyes on stablecoins like TrustToken’s TrueUSD offering that can provide stability and build a strong web of trust between token and underlying currency.

Disclosure:

The author has had a working or personal relationship with one or more companies mentioned in this article in the past. Access to mentioned company’s management and information was made through the author’s personal network. All information was vetted prior to posting.

Disclaimer:

This essay is not intended to be a source of investment, financial, technical, tax, or legal advice. All of this content is for informational purposes only.

TrustToken Launches TrueUSD Stablecoin on Bittrex Exchange was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.