Tether (USDT) Vs TrueUSD (TUSD) – A Side-by-Side Comparison 2020

Anisa Batabyal
| 26 December, 2019 | 2 min

A stable coin is a cryptocurrency that is meant to be pegged to a stable asset like gold or other fiat currency.

Tether (USDT) is a popular stable coin which is tied to the US Dollar at a 1:1 exchange ratio. The initial idea for this was that the total Tether in circulation would match the total USD holdings in the Tether Limited’s bank accounts.

TrueUSD (TUSD) crypto is another similar stable crypto coin which is a part of TrustToken asset tokenization platform. Comparatively, TUSD seems to have risen from all the limitations of the Tether platform.

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Tether Vs TrueUSD 2020 - Let’s discuss the major differences between USDT and TUSD

  1. USDT Vs TUSD Price: First and foremost, currently TUSD is traded at $1.00, which is equivalent of a US dollar with a market capitalization of $78,724,093 USD while the USDT is valued at $0.997, with a market capitalization of $2,748,503,636 USD.
  1. Tether (USDT) is currently ranked 8 by market capitalization while TrueUSD is ranked 71.
  1. The USDT token and Tether Limited has been marred by controversy for a long time now. From allegations to links between USDT and Bitfinex to unconfirmed reports of Tether limited having lesser USD than they actually have. Comparatively, each TUSD coin is backed up in a 1:1 exchange ration with the US Dollar. TrustToken have formed legal partnerships with legitimate banks and fiduciary organizations who hold their USD holdings in Escrow, ensuring their trustworthiness.
  1. TUSD is an ERC20 token and can be stored on an Ethereum wallet, unlike Tether USDT, which is not a part of the ERC20.
  1. Tether Vs TrueUSD Investment : Talking about investment perspective for USDT and TUSD; any investor who is willing to invest in TUSD coin has to do a mandatory KYC/AML before buying any tokens. This ensures the transparency of every transaction compared to USDT.
  1. At the initiation of any transaction a TrueUSD smart contract is created, into which the respective transferred amount is minted and delivered to the User’s wallet. This TrueUSD token can be redeemed for equivalent fiat currency. During redemption of the tokens, another smart contract is activated which burns the number of tokens required. A notification is sent to the bank which then transfers the USD directly to the User’s account.
  1. Another factor in Tether vs TrueUSD debate is the fact that Tether Limited has never been officially audited by any 3rd parties, unlike TrustToken who regularly publish ongoing attestations.
  1. USDT token has been volatile for the past couple of months owing to all of its controversies, however, it remains the second most traded currency in the markets with 22% of total volume traded. TUSD is still in its initial stage and has unlimited potential for growth.

This is how you can differentiate between the like yet not so alike cryptocurrencies. But before thinking of investment, you should stay updated with the cryptocurrency market, so that you can make better and informed decisions.

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