TrustToken Invites Contribution From Investors for the TrueUSD Token
TrustToken, a subsidiary of a16z crypto, is seeking support from investors on the CoinList trading platform. The company intends to issue TrueUSD, a token that is pegged on the US dollar and is exchangeable in a 1:1 ratio with the world’s most popular fiat currency. While the cryptocurrency has only traded for only four months, its market capitalization is presently well over $85 million due to substantial backing from several investors.
Before the commencement of the token sale, the hard cap was set at $61 million, with the token price varying from $0.12 to $0.16. Notable contributors to the presale phase of the TrustToken crowdsale include BlockTower Capital, Danhua Capital, Jump Capital, and many more. Now, the startup is looking for additional accredited investors, starting with those currently trading on CoinList. Moreover, TrustToken has agreed to a deal with HitBTC to list TrueUSD as a quote currency. The token can also function as a stalking horse that secures investments in other cryptocurrencies, namely BTC, ETH, NCH, LTC, XMR, NEO, and so on.
As mentioned earlier, the TrueUSD token is exchangeable with the US dollar in a 1:1 ratio. According to the project team, this rate is likely to appeal to prospective investors to invest in this coin. Unlike conventional banks, the TrueUSD system stores dollar in escrow accounts registered to several trust institutions rather than in a single account. Furthermore, the escrow accounts are authenticated by an autonomous third-party that generates account statements on a monthly basis.
Before buying the TrueUSD token, an investor must satisfy the regulations stipulated in the KYC and AML standards. Once this is done, they are required to send the desired amount (in US dollars) to one of the multiple trust company partners of TrueUSD. After the verification of the deposit, TrustToken initiates the TrueUSD smart contract which issues the tokens in a 1:1 ratio. When the tokens eventually reach the investor's wallet, they can be transferred to other users or be used in the purchase of other digital assets.
Danny An, the founder of TrustToken, is confident that investors will embrace the TrueUSD token because it is stable and withstands the volatility that characterizes the crypto space. By establishing a stablecoin such as TrueUSD, Danny believes that TrustToken has fulfilled the wish of investors to have security for their speculative assets, and enables them to discover hidden financial tools. Additionally, Danny also confirmed that TrustToken earns profits when the TrueUSD is mined or burnt.
Similar to other altcoins, the ultimate goal of TrueUSD is to tokenize physical assets. In this read, Danny and his founding team have set their eyes on real estate. Currently, the property development sector is worth over $200 trillion, a value that Danny believes would increase if the assets were tokenized. This is because liquid assets are more valuable than illiquid assets. The TrustToken project is significantly different from other previous projects developed by Danny, mainly due to its comparatively shorter timeline.