True USD CEO Discusses the Tether Crisis
Almost whole of the industry has been talking about Tether right now. After the stable coin’s price dropped by almost 10 percent at the start of the week, many argued Tether is now dead but now the coin managed to regain its price a little bit.
Their audit and transparency issues have been very well known and recently another stable coin, True USD co-founder Danny An has spoken to CNBC’s Crypto Trader about the latest event surrounding the crypto industry. True USD is seen as a good competitor to Tether as they are offering a renowned approach with an auditable and more transparent view.
“Its difficult to tell because there is a lot of news coming out about it but that’s informed by some information by the banks or the actual, let’s say, regulators if they issue a subpoena. So it’s something where there’s been a lot of suspicion about but there’s never been any concrete real evidence for it.”
Danny An then decided to speak about what makes True USD a better choice compared to Tether. An said they are following the footsteps of Tether but he also insisted transparency is has to be their main priority all the time. He added:
“So what it does is, you have a bank account, that’s an escrow account. You put in a hundred dollars in it and then you mint a hundred dollars in TrueUSD and the matching escrow accounts should always match the circulating TrueUSD.”
This was closely followed by the co-founder speaking about solving the problem of maintaining complete transparency of their bank account as Tether’s escrow account, which remains mysterious, is the key to all the problems. Danny An revealed that they avail services from a public account firm called, Conan Company. The company verifies whether the tokens in circulation are on par with the US Dollars in the escrow account on a regular basis.
Moreover, Changpeng Zhao, CEO of one of the biggest cryptocurrency exchange platform, Binance, spoke about listing the stable coin on the exchange platform. He said:
“Waiting for more people to take advantage of this arbitrage opportunity, ie, buy more PAX or TUSD using fiat. It will bring the price back inline, and increase the total supply. We can’t open a market for a stable coin that only has $24m market cap.”