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Cryptocurrency News

TrueUSD independent audit shows full backing of coins

The stablecoin TrueUSD (TUSD), recently published results of an independent audit, confirming that the coins in circulation are indeed backed by actual US Dollars held in reserve. Independently carried out by Cohen & Company, the audit determined that on March 31st 2019 the company held $199,063,885 in escrow accounts, and there were 198,982,291 TUSD coins in circulation. The importance of this must be emphasised, for a stablecoin to be precisely that, it is imperative that there are physical dollars that back it, for the correct value to be $1 for each coin.

This comes as refreshing assurance after alternative stablecoin Tether (USDT) recently announced that some of their coins in circulation were backed, not by US Dollars, but by various similar assets. However, what these “other assets” comprised of, were never fully disclosed, to many investors surprise. Although suspicions were present by many, it was previously assumed that all USDT coins were pegged to US dollars, as claimed by Tether.

While stablecoins do not have the intention to return large profits on investment, like other cryptocurrencies, they have an essential place in the market. Traders often look to convert their holdings into a stablecoin in anticipation of market volatility. This decreases the risk of their equity reducing in value. Stablecoins are a safer bet to transfer their holdings to, which can then be converted back to a chosen cryptocurrency on anticipation of price rising. With the confidence that TUSD has actual dollar backing, TUSD seems like a more trustworthy stablecoin to use over the likes of USDT.

 

Dollar image licensed via Shutterstock

  1. Good news, and you can store it on Ledger…

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