TrueUSD (TUSD) is the 5th largest stablecoin in the world by market capitalization. Since it’s a stablecoin, its price is designed to remain pegged to the US dollar – it maintains its peg by having all TUSD tokens backed by US dollars held in a network of trust companies’ bank accounts. 

In February 2022, TrueUSD launched a real-time on-chain proof-of-reserves protocol to control its total supply, but the asset and the issuing company are far from transparent, as we will discuss in this review, along with everything you need to know about TUSD.

How TrueUSD (TUSD) Works

Stablecoins can typically be divided into two categories: asset-backed stablecoins and algorithmic stablecoins.

Historically, the most successful stablecoins have been fiat-backed stablecoins (asset-backed) like USDC and USDT.

Other stablecoins, like the algorithmically-backed UST stablecoin, have experienced catastrophic collapses – resulting in many individuals losing faith in these types of stablecoins.

The TUSD stablecoin falls into the asset-backed stablecoin category, whereby all TUSD tokens are backed by an equal amount of collateral. USD funds are used as collateral for all TUSD tokens held in multiple escrow accounts.

TUSD tokens can always be minted and redeemed directly from the TrustToken platform. When you redeem TUSD tokens, you receive the US dollar equivalent – the ratio is always 1:1.

The minting of TUSD tokens is relatively simple and can be done in one of two ways:

1. Mint on an exchange – TUSD tokens can be minted on any of the exchanges where the token is listed. Some of the most popular exchanges that list TUSD tokens are Binance, , KuCoin, and HTX.
2. Mint directly through the TrueUSD website – Users are required to first verify their account by providing identity information. Next, they need to provide their BEP-2 or ERC-20 wallet address and wire funds from their bank account to the address provided in the app. Once the funds are wired, TrueUSD (TUSD) tokens will be sent to the users’ relevant wallet addresses.

What Is TrueUSD (TUSD) Used For?

TrueUSD (TUSD), like other stablecoins, is typically used as a medium of value that can be transferred. The concept behind stablecoins is to provide a simple and stable way to transfer value to others.

The particular asset functions similarly to a USD coin – essentially, it’s the equivalent of a digital dollar. For every TUSD token, there is an equivalent amount of real-world assets held in a bank account/escrow account because TUSD is a regulated stablecoin fully backed by real-world assets.

Where To Buy TrueUSD (TUSD)

TUSD has become a popular stablecoin in recent years. The developers worked hard to create a transparent product that individuals could trust and use with confidence.

TUSD tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase TUSD, you’ll need to deposit fiat money onto an exchange; sequentially, TUSD tokens will then be credited to your digital wallet on the exchange.

You can buy, sell and store TrueUSD tokens on several exchanges, including:

1. Binance (US Customers use Binance.US)
2. Gate.io
3. Coinbase
4. KuCoin
5. Bitfinex

Token holders can transfer their tokens to compatible wallets, but note that this isn’t investment advice. However, users can earn interest on their tokens by using various decentralized platforms.

About TrueUSD (TUSD)

How long has TrueUSD (TUSD) existed?

TrueUSD was initially launched by TrustToken on March 5, 2018. It was listed on Bittrex and achieved adoption relatively quickly. Many individuals were particularly interested in it because it was launched by a US-based company as a regulated stablecoin.

However, the real growth occurred after the TrustToken team sold TrueUSD to a China-based company named Techteryx in December 2020. Within a few years, the TUSD stablecoin became the fifth-largest stablecoin on the market. Within a year, TrueUSD went from a 200-million-USD-worth of stablecoin to a billion-dollar enterprise.

What’s controversial about TrueUSD (TUSD)?

The main controversy regarding TUSD, or True USD, is related to its new owner Techteryx. The company is virtually non-existent, and very little is known about its owners and management.

This mystery makes TrueUSD one of the most misunderstood coins on the market.  Most of the online information regarding the stablecoin is so outdated that when Binance minted $50 million of TrueUSD (TUSD), the price of TRU (TruFi’s governance token) increased by 220% within an hour, even though the same company no longer owns two coins. 

In December 2020, the Trust Token team announced that TUSD was sold to “an Asia-based consortium working with TRON to develop TUSD on Ethereum, TRON, and other blockchain networks.” TrueUSD is also often misattributed to Archblock and TruFi, two companies run by the TrustToken team.

But the confusion around the stablecoin’s ownership and history is normal, expected, and even deliberate. It’s not just that online articles about TUSD are outdated or copied from outdated resources. If you visit TUSD’s official website, you can see that the only company information is related to the Trust Token team, with Trust Token team members listed as team members for TUSD.

Trust Token (now TruFi/Archblock) seem to be managing the project, but their exact relation to Techteryx and the scope of their responsibilities and liabilities aren’t disclosed to the public. Nevertheless, Archblock isn’t the issuer for TUSD; Techteryx is. 

Alleged Links to Justin Sun

When TrueUSD was sold to Techteryx, the company announced that the Tron blockchain would help develop the project, leading many to suspect Justin Sun, founder and former CEO of Tron, led the stablecoin’s acquisition. The company denied the rumors at the time. Later, it was announced that Sun had an advisory role in the company.

Onchain information shows that Justin Sun and Sam-Bankfman Fried’s bankrupt hedge fund firm Alameda Research are the two largest redeemers of TUSD.

Techteryx’s CEO, Steve Liu, is also closely related to Sun: He is the CEO of BitTorrent (bought by Tron in 2018), President of ApeNFT (founded and funded through Tron), and a board director at Valkyre Investments, where Sun is a shareholder and keeps a large chunk of his investments.

Marketed as Transparent and Regulated 

TrueUSD launched a real-time on-chain mint/lock protocol to control TUSD supply in partnership with Chainlink and a public accounting firm in the US. This way, a smart control protocol ensures TUSD supply doesn’t exceed the TrueUSD reserves held in custodian accounts.

This proof-of-reserves solution, along with TrueUSD’s reputation as a US-based company, helps the coin to be marketed as a transparent stablecoin.

However, TrueUSD isn’t actually regulated. A portion of TrueUSD reserves is held in Silvergate Bank and Signet Bank, both of which are in trouble over their relationship with bankrupt crypto companies like Alameda, FTX, Blockfi, and Celcius. A huge chunk of the reserves is held in 1st Digital, a trust company based in Hong Kong.

TrueUSD’s former attesting company Armanino recently stopped providing crypto attestations. Currently, The Network Firm LLP offers attestations for the stablecoin.

However, The Network Firm LLP doesn’t audit Techteryx or the reserves directly. It aggregates data from TUSD reserve custodians.  

Given that Techteryx isn’t US-based, and the company is completely opaque about its owners, management, and leading staff, TrueUSD’s claim to transparency is quite misleading.

Centralization

Users must fill out Know Your Customer (KYC) and Anti-Money Laundering (AML) documentation before buying or redeeming TUSD from the issuer. While others would not consider this a drawback, many in the blockchain community would view this as an infringement on their privacy.

A user’s account could be frozen or even have their tokens taken away by the TrueUSD team if they believe they have violated the terms and conditions of use or any other laws or regulations that TrueUSD must abide by. TUSD is entirely centralized.

The ethos of crypto is to remain as decentralized as possible, and many individuals consider TrueUSD incredibly centralized and thus risky. 

How many TrueUSD (TUSD) tokens are there?

As of February 2023, TrueUSD has a circulating supply of 967 million TUSD. The circulating supply of TrueUSD (TUSD) is 967 million TUSD.

Can TrueUSD (TUSD) be mined?

TrueUSD (TUSD) token is not a mineable cryptocurrency. TUSD tokens are backed by real-world assets and can only be minted once the equivalent dollar amount is deposited into a trusted bank account.

TUSD is marketed as the first regulated stablecoin, and all assets that back TUSD tokens are held in various bank accounts that the company controls.

Some centralized and decentralized exchanges offer users yields on their TUSD tokens if they lock them up for a duration.

Additionally, users can participate on decentralized platforms and utilize DeFi products such as farming and liquidity provisions to earn additional yields on their TUSD tokens.

What is the market cap of TrueUSD (TUSD)?

The market cap of any cryptocurrency can be calculated by using the same formula: the total amount of coins in circulation times the current market price.

TrueUSD (TUSD) Market Cap = 967M TUSD x 1$ = $967 million. The market cap always fluctuates according to the circulating supply and the TrueUSD price.

Biggest Competitors of TrueUSD (TUSD)

The stablecoin sector is incredibly competitive, and the biggest issue new stablecoins face is adoption. Many users pick one stablecoin and never feel the need to switch to another if they’re happy with the stablecoin.

The expected functionality is very simple; stablecoins simply need to maintain their peg and stay stable.

However, recent events such as the collapse of USDT (once the 4th largest stablecoin) are scaring many retail investors away from newer stablecoins. The majority of retail investors have their stablecoin holdings in either USDT or USDC (they make up 84% of the total market cap of the stablecoin sector).

The biggest competitors of TrueUSD are:

• USDT
• USDC
• BUSD
• DAI
• Pax Dollar

What Are the Future Plans for TrueUSD (TUSD)?

TrueUSD team launched a new on-chain proof-of-reserves mechanism for the token in February 2023. The mechanism includes a smart contract that prevents the creation of new TUSD tokens unless there are sufficient reserves to back the token.

This is incredibly important because if users are worried that their stablecoin might de-peg or be delisted from an exchange, they will likely opt for another stablecoin.

One of the biggest issues faced by TUSD is becoming one of the top three stablecoins on the market. Currently, the market cap of TUSD is 40x smaller than that of USDC and 70x smaller than that of USDT.

Binance recently minted 50 million USD worth of TUSD to diversify its crypto holdings after its own stablecoin BUSD came under regulator fire for many issues.

Pros And Cons Of TrueUSD (TUSD)

Pros:

• The 5th largest stablecoin – The TUSD token is currently the 5th largest stablecoin on the market. TUSD’s market cap has increased significantly in the past year, and more retail investors are opting to use TUSD as their preferred stablecoin.
• Listed on major exchanges – Tokens listed on major exchanges are often deemed more credible by retail investors. TUSD is listed on various top platforms, including Binance and KuCoin.
• Online proof-of-reserves available through Chainlink – POR smart contract is supposed to ensure TUSD is backed up by reserves, at least in theory.

Cons:

• Centralized stablecoin – Many individuals trust the token more because it’s centralized, while others believe that it’s a risky investment. 
• Mysterious owners and opaque organization – TrueUSD is owned by a mysterious China-based company named Techteryx. 
• Lack of regulation – Despite what you may read online (or on TrueUSD’s own website), TUSD isn’t a regulated stablecoin. It receives attestations (but not audits) from a public accounting firm, but the company isn’t regulated.
• Tiny market share – The TUSD token is the 5th largest stablecoin, which sounds impressive, but the picture is a little different when you consider its market share. TUSD’s market cap is more than 40x lower than the 2nd largest stablecoin (USDC) and more than 50x lower than the largest stablecoin (USDT).

TUSD User Reviews

Review Summary

Recent TUSD Reviews

Submit a TUSD Review