A company that you have never heard of before, named TrustToken have launched their new digital coin. It is completely dedicated to those who want to invest in their own crypto-assets. The audited currency, that has been fiat backed is known as being TrueUSD. It has raised well over $20 million so far and this is all from traditional venture capitalists. In this case, a group of people have been led by brand names such as Andreessen Horowitz. He is the VC firm of website browser Marc Andreessen and this is interesting news to say the least. Over the last couple of weeks, TrueUSD has managed to establish a market cap of well over $50 million. This is all because of institutional money and it keeps on pouring into the crypto space. At the end of June for example, it had nearly $60 million in TrueUSD coins and these are all fully backed by the dollar. Over the last five weeks, Audited stable coins have been a prime example of how the cryptocurrency space is wise to the point where they know that traditional money managers want a piece of the action. They want in on the market that looks like a more traditional market on the surface, and they know well that trading tokens for a handshake could be something very similar to the Star Wars cantina.
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So, TrueUSD launched in March and it is one of the many coins that have been linked to a fiat currency. They are also part of the group of coins that do get audited as well. Of course, it’s important to know that it is the audited stable coin that brings a new level of traditional financing to the market. If you are a portfolio manager for cryptocurrency then you will know that there is not usually a fiat on currency exchanges. If you need to make an exchange then you will also have to have a cash position moving in and out of the token. For this reason, it is far better to deploy a capital from any stable coins that are sitting in your wallet. It’s not as volatile when compared to Bitcoin either. The top two exchanges on the world are Binance and OKEx. They do not allow the fiat to exist on their platform at all. Investors who happen to hold their money there usually do end up putting it in either Bitcoin or even Tether. Tether on the other hand, is not audited either. Exchanges can easily take as much as 10% from you in fees if you wanted to go from fiat to tether and this is not good news at all for those who want to make a substantial investment.
Marc Andreessen is a strong believer in stable coins. His company actually went on to invest in TrustToken and this launched after a good amount of time, TrueUSD. This is a dollar-backed cryptocurrency that is completely audited. It is his idea to try and target the professional and crypto-asset funds manager. He believes that people don’t actually want to convert to fiat and this is because of the transaction fees and even the legal implications. This can easily include things like taxes. One limitation of fiat is the speed of the transaction. This can actually be resolved by stable coins if they are used in the digital space. When compared to other coins, you will soon see that it can stop evading risks coming from unstable market scenarios and this cannot be compared to anything else at the moment. Of course, there are some managers out there who did not want to be quoted as going on the record, but they have come out to say that they would carry on using fiat to trade cryptocurrency. Everyone seems to agree that a stable coin that has been audited is quite possibly the best version of the stable coin, even if other people are not using them right now.
Alexey Ivanov who is the portfolio manager over at Polynom Crypto Capital has stated that he has no reason to hold any form of stable coin right now. He has stated that he can use fiat on his exchange but for trading, it is actually way better to invest in crypto dollars and this is because it is both faster and cheaper. At the end of the day, you have to look at the time, and when comparing minutes to days, it is an easy decision.
TrustToken launched in December of 2016 and they only had a team of eight staff when they first started out. Now they have over 20 staff working for them and they do expect to expand this in the near future. The bulk of their hiring activity comes from product managers and even former investors. To the naysayers who state that Bitcoin is a bubble and that blockchain is just an upgraded version of the internet, all of this seems to be snake oil. The company have claimed that they are bringing in new funds and that they are also talking with new investors every single week as well. They have been doing this since January so it is incredibly interesting to see how all of this will turn out. On top of this, TrustToken have a plan to launch a Hong Kong Dollar, a gold product and even a Euro later on in the year. It could actually be next year when all of this comes to fruition but you never know what is going to happen.
There have been a huge and growing number of investors and developers from all around the world who believe that cryptocurrency will be securitised and even regulated as well. When all of this happens, a portfolio will be just as common as an investment strategy. Goldman Sachs who is a family of officials who have a very high net worth have stated that individuals can gamble on the market and if everything goes well then the right coins will certainly come to light. A list of people who believe in this carries on expanding and the consensus is that traditional firms will want to trade things like cryptocurrency and at very high levels. When you look at stable coin, you will see that this is the virtual fiat for those types of funds.
Gregory Klumov, who is a Russian investor and entrepreneur is working on a stable coin at the moment and it is being backed by the Euro. He happened to move to Malta and he is now racing to try and get some rules put in place for those who want to invest. He passed the virtual financial law in 2018 and Klumov worked as a consultant. He has come out and stated that it is designed for institutional investors who want to trade in cryptocurrency funds. He has also stated that by adding EURS, it will be allowed in Malta just for now.