Knowledge Base

Stablecoins are cryptocurrencies pegged to less volatile external assets like fiat currencies, precious metals or oil. The supply or value of a stablecoin can also be pegged to other crypto assets or be fixed by algorithms. Stablecoins retain the same worth as their underlying asset instead of going through dramatic price swings. The general idea of stablecoins is to sustain a steady value over a prolonged period.

Stablecoins play a crucial role in the crypto ecosystem. They enable more people to access the benefits of the blockchain without the risk of dramatic price swings. Besides, they provide firm ground for the traders, investors, vendors and other players who want to park their gains or assets. Fundamentally, backing the coin with less volatile traditional assets like USD or Gold makes it more stable, thus providing a safer alternative for all the players in the crypto ecosystem.

One of the most prominent examples of a stablecoin is Tether (USDT). Whenever USDT tokens are issued, an equivalent sum of USD gets deposited into an audited bank account. Tether also has a platform where users can deposit and withdraw actual USD. The circulating supply of the USDT tokens shrinks or grows based on the dollars held in the bank account. Tether has been the most trusted stablecoin since its launch in 2014.

At the same time, the situation has opened a window of opportunity for a new generation stablecoins that can hold themselves to a higher standard. TrueINR is one of such projects.

The core problem TrueINR is helping solve is digitising money. The current physical money in its traditional form is limited to geographical use. There have been growths in online money solutions however those are mere reflections of the traditional money only. Though such solutions are surely appreciable, however TrueINR is a radical upgrade to this solution which makes money truly usable on the internet! On-ramping traditional money on the blockchain results in seamless flow of funds over the internet. TrueINR is a premier solution that offers this as a service.

All TrueINR’s are pegged at 1-to-1 with a matching fiat Indian Rupee (e.g., 1 TINR = 1 INR) and are backed 100% by actual currency reserves. As a fully transparent company, TrueINR has plans to publish a audited timely record of our bank balances and the value of reserves it holds.

Investment in TrueINR is investment in Digital Assets, which is similar to investment in Stocks / Bonds, albeit as a new asset class. You should treat your investment in TrueINR as an investment in Digital Asset and thereby three disclosures are possible :

  1. If investment in Digital Assets are for long term purposes, it should be treated as Capital investment and thereby capital gains are to be reported upon incurrence of such gains.
  2. If investment in Digital Assets are for regular / daily trading purpose, it should be treated as business investment and expenses can be claimed against it, post which corporate tax is to be paid, upon incurrence of business profits.
  3. If investment in Digital Assets are for casual purpose, then it should be treated as other sources, and the gains or profits be reported under tax head – Other sources of income.

            Note: These are recommended disclosures and not tax advice. You may consult your Tax advisor for these matters in addition to this disclosure.

Token recovery is a complex, expensive, risky and time-consuming process.

TrueINR does not offer a token recovery service for deposit mistakes (e.g., deposits of tokens not supported by TrueINR or tokens sent to a wrong address).

Please exercise extreme care when depositing tokens.

In limited cases, as determined by TrueINR in its sole and absolute discretion (e.g., significant losses resulting from one or multiple deposit mistakes), TrueINR may attempt to assist you in recovering your tokens.

TrueINR may also charge you a recovery fee, based on the level of difficulty of the recovery and the time needed to help recover all or part of your tokens.

Fees deducted from the amount of an outgoing TINR transfer are set to cover the average Ethereum network transaction (gas) fees to ensure transactions are processed in a timely fashion. TrueINR reviews and updates these fees on a weekly basis and they are subject to change depending on the state of the Ethereum network.