Will TrueUSD replace Tether as the top stablecoin?

16 Oct, 2018
by Arthur Sillers
News
Will TrueUSD replace Tether as the top stablecoin?

The stablecoin market is being pointed to as an important advancement for the maturity of crypto, with Tether as the clear leader. With recent events, Tether's future is increasingly tenuous- will TrueUSD be its successor?

Tether has comfortably held its place among the top 10 cryptocurrencies, and has been definitely the leading stablecoin, a class of cryptotoken which has seen a lot of recent interest. With Tether facing a significant sell off following the stablecoin’s loss of stability amidst Bitfinex controversy and deposit problems, its future is not guaranteed. This is an opportunity for competing stablecoins like TrueUSD, which has already been quietly making gains against its competitors.

Earlier this month, Digifinex delisted Tether and replaced it with TrueUSD, citing the fact that TrueUSD has proven its value through an independent audit as a reason for the switch

In an interview with Ran Neu-Ner today, the CEO of TrueUSD Daniel An was careful not to defame Tether, noting that rumors of its insolvency are not ‘concrete,’ and seemed at worst agnostic as to whether Tether really has the funds it claims back up each of its USDT tokens. Rather, An drew a distinction between the design of the cryptocoins, noting that when he was helping create the cryptocurrency, he saw it explicitly as an improvement on the model Tether pioneered.While Tether broke ground for creating a digital token pegged to the US dollar, it has faced myriad skepticism surrounding the claim that Tether has a dollar for every USDT issued.

With this in mind, TrueUSD reserves the services of Cohen & Company for their attestations, and extends this transparency to withdrawals and deposits. An claims ‘we have no access’ to escrow funds, which are all handled by ‘independent fiduciary agencies,’ which wire transfers fiat currency to those who cash out TrueUSD tokens, which themselves are ‘burned.’ An states that ‘stability is lead by redeemability,’ which has been adequately shown by Tether’s instability in the face of fears that USDT tokens were not redeemable.

This day has been a victory for TrueUSD, whose value peaked at a high of $1.05, and traded for as much as $1.14 on Binance. Their token TUSD is also currently seeing its highest trading volume ever in the past 24 hours as traders interested in a dollar-pegged coin migrate from Tether. Along with three other stablecoins, TrueUSD as of today has also been listed on the OKex exchange.

While Tether's reputation is becoming marred, TrueUSD continues to gain victories. If these trends continue, TrueUSD is in a good position to be the top stablecoin sometime next year.

Read more about: Tether (USDT)

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