Digifinex Crypto Exchange Gets Rid of Tether Adopting TrustToken’s TrueUSD Instead
Volatility has always been one of the most serious issues related to cryptocurrencies. Volatile prices have prevented a number of potential investors from entering the crypto space and bringing their money and innovative ideas. To be widely adopted, cryptocurrency needs to be accepted by both retail and institutional investors but a lot of them are afraid to face lack of stability in their investments.
With a view to address this problem and to exclude the aforementioned barrier, some startups decided to offer their price-stable cryptocurrencies, so-called stablecoins, that are cryptocurrencies pegged to another stable assets.
The most well-known stablecoin is Tether (USDT) that is pegged to the price of the U.S. dollar. Given general crypto market conditions, Tether is considered to be an incredibly stable currency. It has managed to become the most commonly used stablecoin listed on the majority of top platforms. But now the situation has changed.
The Singapore-based exchange Digifinex that has daily trading volume of nearly $120 million and occupies its position in top 20 exchanges list according to CoinMarketCap has announced its decision to replace USDT with its rival, TrueUSD.
Commenting this decision, Kiana Shek, Digifinex’s co-founder, said that she had been considering different variants to delist USDT for months, explaining that she didn’t believe in Tether but had to list it as there was no another choice.
When asked about the platform’s plans to list TrueUSD, Shek answered:“Through my research, due diligence, and my communications with the TrustToken team, I have come to appreciate their commitment to industry-leading best practices.”
Though given its ease of use and current position among the top ten cryptocurrencies by market capitalization, USDT is widely used by traders, no independent audits have been carried out to confirm that each USDT in circulation is backed by the equivalent amount in dollar reserves. At the press time, USDT is the eighth-most valuable cryptocurrency by market capitalization.
As for TrueUSD (TUSD) developed by the platform TrustToken, that has raised $20 million in its ICO this summer with the help of Andreessen Horowitz (a16z) and other venture corporations, it, just like USDT, can be redeemed 1-for-1 for US dollars.
Namely due to the controversy surrounding the leading stablecoin, TrueUSD has managed to win such attention just at the very beginning of its way on the market.
TrueUSD is claimed to be 100% collateralized with the U.S. dollar and TrustToken as well as TrueUSD are regulated under U.S. federal law by FINCEN which makes this stablecoin look much more reliable than its predecessor.
Speaking about recent success that follows TrustToken Project, let us recall that in July it established the new partnership with cryptocurrency trading and education platform HybridBlock, which entered into collaboration with the TrustToken with a view to use TrueUSD on its HybridExchange.