What Does TrustToken Mean?
The TrustToken is an Ethereum-based dApp which is built to create asset-supported tokens along with facilitating the transfers of values across the borders. To know more clearly about TrustTken let us first understand what TrueUSD (TUSD) is. TrueUSD also known as TUSD is a stable coin and the ERC-20 token which pegged against the value of the U.S. dollar. TrustToken’s marketing revolves around taking advantage of criticism and controversy surrounding Tether USDT’s association with the Bitfinex crypto exchange and manipulation of Bitcoin price.
A couple of years ago, in 2017, the organization injected more units of USDT into the supply. This increase in supply created nearly $3 billion market capitalization by the end of the same year. Investors were allowed to buy BTC tokens with this USDT on Bitfinex. Btfinex had an association with Tether’s team.
Last year went into criticizing Tether. However, the crypto market is still interested in stablecoins. And this is precisely what is working in favor of TrustToken. TUSD being an ERC-20 utility token is backed by every ERC20-compatible Ethereum wallet.
Market Performance of TUSD
As we have seen above, TrueUSD is a stablecoin. This means that the price of a stablecoin would always settle around $1. But, on May 16, 2018, was an exceptional day. On this day the value of this stablecoin reached at its highest point ever- $1.30.units. The TUSD is available for trades many crypto exchanges like Kryptono, Bit-Z, Binance, among a few others. All the exchanges together trade worth $16 million TUSD every day.
Stablecoins were introduced in the crypto market to ensure that the liquid fiat assets are always present in the market for those people who expect crypto payments or cash from their crypto balances. This new addition appeared very attractive in the beginning. The first ever stablecoin Tether, however, had an undefined relationship with Bitfinex. The tether was alleged for using this relation to manipulate its market value. This allegation affected not only Tether but also the whole concept of stablecoin.
However, the market kept on inviting new stablecoins, and TrustToken is one of them. But, TrustTokes are slightly different than others as these tokens distribute the Tether related risk by holding the money in escrow. In other words, TrustToken has no direct access to the funds, and in case of any unwanted incidents like the closure of the project, the users would be allowed to access the funds.