TrustToken, the company behind the TrueUSD license, raised $ 20 million as part of a strategic financing round of Andreessen Horowitz, BlockTower Capital, Danhua Capital, GGV Capital and other parties .
CEO Danny An told CNN:
"The most recent series will support the development of the TrustToken Asset Token Platform, for assets that may include currencies, stocks, real estate, and more." Funding will also be used for expansion. TrustToken's legal, partnership, product and engineering services.
TrueUSD had a difficult start on Binance after its May list which saw the value of the stablecoin jump 40% to $ 1.40 before stabilizing again, obviously a huge problem for a currency designed to match the dollar.
One said the trading bots were to blame for the spike, designed to snap up newly listed currencies regardless of price - because they had not been programmed to skip the stablecoin they accumulated in bulk, even though the price started to climb, despite the lack of incentive to do so. The team was able to regain control of the price for a long time, although there was a delay in the launch as the survey progressed.
One person told CCN that the team has taken steps to better protect the value of the currency:
"We've started educating merchants to avoid buying any TrueUSD for $ 1. Here's an example of our published content to educate traders." As a rule, as awareness increases of the possibility of TrueUSD buyback for $ 1 increases, stability will also increase.It does not make much sense to pay more than $ 1 for something that is essentially a claim for $ 1 exactly. "
With things under control, An describes big plans for the stablecoin, saying that the US dollar is not the only currency TrustToken is watching. "We have been focusing on TrueUSD since its launch three months ago, as there has been strong demand for a reliable and reliable stablecoin.In just three months, the market capitalization of TrueUSD (TUSD) has reached more than 60 million The next step would be to mark other currencies such as the euro. "
TrueUSD rivals Tether as the only other fiat-supported stablecoin on the market. Both projects claim to reserve US $ 1 for each token they issue, and to burn one chip for every dollar returned to investors. By collating the currency with fiat, the team can ensure that investors can still cash in large amounts with no impact on price, allowing traders to preserve the value of their holdings during a market downturn and enter the market. market without immediate exposure to price volatility in Bitcoin and altcoins.
Tether, however, has been mired in controversy since the dismissal of their auditors and the refusal to disclose financial statements showing investors that they really have the guarantee of supporting the coins. If the project emitted tokens not repaid, a massive and sudden withdrawal could completely crush the project because Tether could not cash everyone, leading to a spiral of death that would create a shock wave throughout the market.
The main difference between TrueUSD and Tether (the only other stablecoin on the market supported by fiat) is that TrustToken does not hold any of the funds received when purchasing TrueUSD. TrustToken is working with licensed trust companies that are already managing billions of dollars to open an escrow account on behalf of TrueUSD token holders, "said An.
As skepticism grows over the legitimacy of the Tether project, other stablecoin projects compete to act as the primary volatility haven for crypto-traders with different methods such as Havven's eUSD and Digix. It remains to be seen if TrueUSD can take first place, but in today's experimental ecosystem, one thing is certain: the cryptomarket needs a reliable stablecoin, and it needs it now.
