Crypto Academy Week 7 Homework Post for @yohan2on [StableCoins (TrueUSD)]

We meet again on homework for the 7th week of Steemit Crypto Academy. This time I will make a post for the homework of @yohan2on. The topic I will discuss is the TrueUSD.

TrueUSD

TrueUSD (TUSD) is the same stable coin as other stable coins like DAI, USDT, and others, TrueUSD was created in 2017 by a company known as TrustToken which has made many other stable coins. TrueUSD is engaged in the Etheruem blockchain. If you move on to the Ethereum Blockchain, you can be sure that TUSD is included in one of the ERC-20 tokens.

Just like other stable coins, TrueUSD is also pegged to the US dollar, to keep the coin price at 1 US Dollar at all times, because the asset price is set at 1 US Dollar it will provide space for traders or investors to use the money to hold their crypto assets at a price and can profit from trading.

If we pay attention now that the cryptocurrency world is always plagued by market volatility which is a big problem to worry about, suppressing this requires a lot of stable coins like TrueUSD.

source

How TrueUSD Works

The working system of TrueUSD is the same as other ERC-20 tokens which work using smart contracts on the Ethereum blockchain. When someone buys TUSD tokens directly from the TrustToken platform with fiat currency, namely American Dollar, the smart contract underlying the platform will automatically generate and issue an amount of TUSD that corresponds to the amount of fiat currency they want to exchange for TUSD and automatically supply the TUSD tokens in circulation Will increase.

Conversely, if someone will exchange his TUSD token on the TrustToken platform, the smart contract will automatically take the exchanged token and will delete it permanently from the circulating TUSD supply and automatically the circulating TUSD token supply will decrease.

source by CoinMarketCap

Advantages and Disadvantages Tether

1. Advantages

TUSD has several advantages which in my opinion are very good, including:

• TUSD has a high level of liquidity, meaning that we can purchase TUSD tokens in many places. In addition to purchasing TUSD on the official TrustToken website, we can also buy TUSD on various exchanges, so far there are more than 70 exchanges that have traded TUSD and have more than 160 markets spread across all of these exchanges.

• Because TUSD is included in the Ethereum Blockchain, all transactions that occur will be recorded transparently and the data is recorded in real-time.

• Can take advantage of other assets without fear of price fluctuations because TUSD has a price that tends to be stable.

• TUSD does not charge a purchase or redemption fee for each transaction.

source

2. Disadvantages

As with other StableCoin drawbacks, TUSD cannot be mined. This is because the supply from TUSD can only be made if there is a request from the user to create the token which aims to store their crypto assets in order to avoid high cryptocurrency fluctuations. If TUSD can be mined, there will be a very significant price drop and will make the TUSD price unstable.

Conclusion

The emergence of TUSD gave cryptocurrency owners more options for storing their assets. And this is quite positive where indeed the presence of StableCoin like TUSD is very important for cryptocurrency owners.

cc: @steemcurator01
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cc: @yohan2on
cc: @steemitblog