Tether (USDT) is one of the market’s most controversial and influential cryptocurrencies. At the latest since the publication of a study last week that Tether has manipulated the Bitcoin price, Tether is back in discussion. Not surprisingly, the largest stablecoin competitor, TrueUSD, continues to gain in popularity.
TrustToken, the company behind TrueUSD (TUSD) today announced that the number of issued tokens has risen sharply from around 4 million to over 62 million tokens within a few months, with the highest trading volume coming from the TUSD / USDT pairing.
Both Tether and TrueUSD are pegged to the US dollar, so the tokens represent a value of one US dollar. The cryptocurrency exchange Bittrex launched the “Stablecoin” TrueUSD in early April. In mid-May, Binance, the largest cryptocurrency exchange, followed and introduced TrueUSD on its platform.
Stablecoins are useful because they protect traders from market fluctuations and are considered a “haven”. As it was discussed several times in the past, the company behind Tether is repeatedly accused of trading and manipulating USDT. Furthermore, it has not been proven to date that the same amount of circulating Tether is backed by a counter value in a US dollar bank account.
TrueUSD should be 100 percent transparent and trustworthy, unlike Tether. According to trusttoken, once a user uses fiat money, it is secured on a trust account. It should also be possible to withdraw the fiat money at any time.
One reason for the growing popularity of TrueUSD is certainly the skepticism of some investors towards Tether and the seriousness of TrueUSD. In particular, the fact that the largest trading volume comes from the TUSD / USDT pairing clearly shows this. Another driving factor in the rise of TrueUSD tokens is undoubtedly the listing of TrueUSD at Binance.
Compared to Tether, however, the circulation amount of TrueUSD is still considered to be very low. Currently around USD 2.6 billion is in circulation. The trading volume of USDT was about $ 2 billion in the last 24 hours (according to Coinmarketcap), which means # 2 behind Bitcoin. The volume of TrueUSD was only $ 14.8 million (# 56).
TrueUSD and TrustToken receive $ 20 million in funding
For TrueUSD, there are also more positive news to report. Trust token received a 20 million US dollar financing round from various institutional investors such as trust token on the company blog yesterday explained.
Investors include Andreessen Horowitz, BlockTower Capital, Danhua Capital, GGV Capital and others. The funds are to flow into the development of the TUSD Token. It is uncertain whether funds flowed directly into TUSD purchases. The goal of the project, however, is to become one of the most influential sources of liquidity in the crypto market.
Danny An, CEO of TrustToken said:
Supporting these leading investment firms is a significant step toward our goal of building a compliant platform for currencies, commodities and assets. We will leverage the combined expertise and network of these companies to expand our industry partnerships and extend the reach of our first product, TrueUSD.
Marko Vidrih @cryptomarks
Image via coinwire.com