Blockchain Investor Analysis

TrueUSD

TUSD
Current Price $1.00 (+0.01%)
TrueUSD is a fiat-collateralized stablecoin that is pegged 1:1 to the US dollar. TUSD was launched by TrustToken in 2018 and operates on the Ethereum blockchain as an ERC-20 token.

Our Rating:

Market

Problem that it solves

TrueUSD provide price stability to volatile digital currency market. TrueUSD claims to differentiate itself from the competition via regular attestations of escrowed balances, full collateral, and legal protection in the event that funds are misappropriated.

Customers

The majority of 'initial wave' customers for TrueUSD will likely be former Tether users who are in search of a more trustworthy stablecoin option. As with most stablecoins, traders will hold funds on exchanges for trading in and our of risky digital assets.

Value creation

Users who adopt this token will have access to a stable digital currency that has its value pegged to the US dollar. In addition, TrueUSD publishes all third party escrow service balances so that the public is aware of exactly where funds are allocated and how much collateral actually exists in the banks.

Market structure

The stablecoin space has room to grow, especially when you consider the very first mover came to market in 2014. TrueUSD has found their niche in the market as a 'safe stablecoin', which could bode well as cryptocurrency users continue to shift towards stablecoins.

Market size

The stablecoin market is ripe for a boom in the near future. As soon as consumers start to adopt digitized versions of the US dollar to transact online, the market size is in the billions.

Regulatory risks

TrustToken has registered with a few different government regulators. It has taken steps to ensure legal operations, and it's even implemented a Know-You-Customer and Anti-Money-Laundering requirements for all account holders and trades.

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Competitive Advantage

Technology/blockchain platform

TUSD is an ERC-20 token that operates on the Ethereum blockchain.

Lead time advantage

TrueUSD sits in the middle of the park when it comes to lead time advantage. TUSD hit the market slightly before USDC but many years after Tether.

Contacts and networks

The TrustToken team has managed to establish TUSD as one of the leading stablecoins in a competitive market through exchange listings and the token's use in DeFi apps. However, the team does not boast any big names.

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Management Team

Entrepreneurial Team

The leadership team of TrustToken is tight nit group of ex-coders and finance professionals. The team clearly has the talent and has managed to put TUSD on a strong growth trajectory in a competitive markets.

Industry/technical experience

TrustToken was launched in early 2018. The leadership team is comprised of very young, talented professionals. Skeptics could point to lack of experience as the most significant concern with this project since the team simply has yet to amass the anywhere near 10,000 hours in this industry.

Integrity

Integrity is at the core of this project. TrustToken's top priority is transparency and trust.

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Token Mechanics

Token required

The TUSD token is absolutely necessary in the project as it is a digital currency meant to replicate the US dollar in the blockchain markets.

Value added

TUSD has the same benefits as other stablecoins, which include low fees, quick transfer times, and a global reach. TrustToken's goal is to separate themselves from other competitors via their enhanced security and transparency features.

Decentralized

All fiat-collateralized stablecoins are centralized. TUSD is no exception.

Token supply

TrueUSD has an unlimited token supply as users can convert dollars into TUSD and redeem them again at will.

Public exchange

TUSD can mainly be found on smaller exchanges. The main exception is Binance.

MVP

The TrustToken platform is live and well. Interested parties can tokenize assets, stake their own assets, or exchange US dollars for TUSD on the platform.

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User Adoption

Technical difficulty

As long as you are familiar with the concept of stablecoins, you can easily understand TrustToken and TUSD. It is a stable digital currency pegged to the dollar that runs on a blockchain.

Halo Effect

TrustToken has some relationships with accounting firms for audit purposes, but they have yet to land a marquee partnership that would give that coveted halo effect.

Buzz

TrustToken has yet to generate real buzz around their project, which is disappointing when you consider how few stablecoins are actually in existence today. Their CEO and company social media accounts lack any significant following, indicating low interest for this project across the web.

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Overall Score

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Blockchain Investor Analysis

TrustToken has put itself in position to capture a significant portion of the stablecoin market. Its focus on transparency and trust is refreshing in the industry. However, the are up against stiff competition that has more lead time advantage.

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