True USD Stablecoin Cryptocurrency Guide| What is TUSD?
In the past two years, we’ve seen the astounding rise of stablecoins across the crypto world. Many new names such as BUSD (Binance USD), UST (US Terra) and similar have taken up a large share of the stablecoin market - and one of those was the True USD, also known as TUSD. Join us in finding out what is TUSD, and learn how to use the True USD stable coin!
What are stable coins?
As you may already know - stablecoins are coins pegged to the value of a FIAT currency, most commonly the US Dollar, but there are also stablecoins pegged to other FIAT currencies, such as the EURO, the GBP and the Chinese Yuan. Their value is always (or almost always) the same, being pegged 1:1 with the FIAT currency.
There are four main types of stablecoins, identifiable by their underlying collateral structure:
FIAT-backed stable coins have been dominating the market so far, however, we’re now also seeing the rise of both crypto-based stable coins, such as UST on the Terra platform, as well as algorithmic stable coins, such as the recently hacked Cashio on the Solana platform.
We also have to mention the commodity-backed giant USDT (Tether) which has recently been getting a lot of flack due to being less than sincere regarding their backing, which in turn caused a lot of people to switch over to other stable coins.
What is TUSD?
So - what is TUSD?
Well, True USD is a fully collateralized and legally protected ERC-20 token that is pegged to the US Dollar in a 1:1 ratio. TUSD was also the first crypto-asset built on the TrustToken platform in 2018.
You may wonder - “Why is it we’re only now hearing about all these new stablecoins” and you’d be right to ask that question. Up until recently (let’s say mid-to-late 2021) USDC and USDT were the two main and most commonly used stablecoins. However, with the foreshadowing of an eventual crash within the Tether organization due to a lack of backing to their stablecoin, many started looking for a different stablecoin to keep their money safe and sound.
At the same time, many new projects and platforms developing their own stablecoins started picking up traction in the crypto community, which brought on the meteoric rise of several stablecoins - such as UST and TUSD.
Seeing how the price of TUSD coin is pegged to the US dollar, the price of TUSD is always $1 USD, or maybe a tiny amount over or under depending on several factors. In the first months TUSD actually had a lot of price volatility, back in late 2018 and early 2019 as you can see in the image below.
This was sorted out over time and TUSD is now a true stablecoin with minimal price volatility, as it has been very firmly pegged to the US Dollar.
What is TUSD backed by?
True USD is backed by the US Dollar. In fact, you can actually mint TUSD on their website and get TUSD 1:1 for U.S. Dollars on the homepage directly. Just like other TrustToken stablecoins, TUSD is fully collateralized meaning that for every TUSD coin, the foundation can provide 1 US Dollar in return as a form of backing the stablecoin.
Is TUSD fully backed?
Yes, TUSD is absolutely fully backed by the US dollar, and TUSD tokens are minted and destroyed as users purchase and redeem them.
Is TUSD an ERC-20 token?
Yes, TUSD is an ERC-20 token built on the Ethereum platform. However, TUSD can also be found on other blockchains as well, as True USD maintains a presence on TronChain, BinanceSmartChain, BinanceChain, AvaChain, and several others. Also keep in mind that TUSD is available on over 30 DeFi platforms, including UniSwap, JustSwap, Avalanche, Celsius, and lots more.
Many wallets support the TUSD stablecoin - but many users have overwhelmingly recommended using the Trust Wallet. Other commonly used wallets to hold True USD are MyEtherWallet, Mint, Jaxx and more. You can also store TUSD on Trezor, Ledger, and other hardware wallets for the utmost security of your coins.
Here are some of the things you should be keeping an eye out for when choosing your dedicated TUSD wallet. The wallet should have all, or at least most of the following features:
- Low or custom TUSD transaction fees
- Two-factor authentication (2FA)
- Low minimum deposit amount
- Complete crypto exchange capabilities
- Fiat onramps and offramps
- Multisig capabilities
- The ability to lock and unlock withdrawals at will
- Customer support
- Multi-chain support
Can MetaMask hold TUSD?
Yes, MetaMask can hold TUSD and is one of many supported wallets which you can use to store and transfer True USD.
Does Coinbase accept TUSD?
Yes, Coinbase does accept TUSD. In fact, TUSD is accepted by almost every major CEX’s (centralized exchange) and a good chunk of DEX’s (decentralized exchanges) as well. True USD is widely accepted by the crypto community and is seen as one of the toughest competitors to USDC and other stablecoins.
How does TrueUSD work?
True USD works just like any other stablecoin. It holds its value just as the US Dollar holds its value. You can use it to buy other cryptocurrencies, or you can stake TUSD on one of the many staking platforms that support it. Some businesses also accept TUSD just as they accept US Dollars, which means that you are also able to use it for real-world exchanges of goods and services.
How can I buy TUSD?
As we mentioned before, TUSD is available on a large number of exchanges, making it very easy for users to acquire some True USD. You can pay for it using your credit card, or simply exchange your existing cryptocurrencies to USD on the exchange itself.
Is True USD a good investment?
As we’ve already established, TUSD is pegged to the value of the US Dollar, so if you believe investing in the US Dollar is a good investment then buying TUSD is an equally good investment opportunity.Written by Alex Trpovic