Aussie app promises 4%pa return on AUD 'stablecoin' cryptocurrency

Comparison site reckons 12,000 Australians are waiting to plough their money into this earner. This is how it works.

half a man's face from the nose up peers over a table with a wide eyed, raised eyebrows curious expression while his hands grip either side of the table.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An Australian smartphone app is offering a return of 4.01% per annum paid out daily for users who buy the TrueAUD (CRYPTO: TAUD) cryptocurrency.

The Finder app claims more than 12,000 Australians are currently on the waiting list for its Finder Earn scheme, which launched this week for 1,000 users.

The feature is described as "a cryptocurrency-based loan" given from the user to Finder, which pays out 4.01% as compensation.

TrueAUD is a 'stablecoin' that's theoretically pegged 1-to-1 to the Australian dollar.

"Based on the Finder Earn model, if you were to transfer the maximum initial balance of 10,000 TAUD to your Finder Earn wallet, you would make more than 400 TAUD in a year on your capital," stated Finder.

A very competitive return

The 4.01% return per year is pretty attractive in the current near-zero interest rate environment.

With the Reserve Bank's cash rate languishing at a historic low, even the best bank term deposits barely bring back 0.5% per annum.

While there are ASX shares that provide a dividend yield of 4% or more, there is no knowing whether your initial capital will grow or shrink.

Finder editor-in-chief Angus Kidman reckoned Finder Earn is an Australian-first.

"The financial world as we know it is changing and we are giving Aussies a chance to participate in this new ecosystem," he said.

"Finder Earn is an exciting way of getting a more attractive yet stable return on your capital."

Is TrueAUD truly true?

Even though TrueAUD is theoretically pegged to the real Australia dollar, buying and selling still depends on supply and demand. For example, on Tuesday morning, CoinGecko was showing that one TrueAUD was worth $1.24.

But the Finder app is guaranteeing instant fee-free liquidation, which is another massive advantage over locking money into a term deposit.

"You can withdraw your capital from your Finder Earn account at any time with no fees," said Kidman.

"Our mission is to help people make better financial decisions. Understanding crypto is not easy and we are trying to demystify it."

TrueAUD was created by a company named Trusttoken, which also makes stablecoins TrueUSD (CRYPTO: TUSD) and TruePound (CRYPTO: TGBP).

According to Trusttoken, TrueAUD currently has a market capitalisation of $30,917,724.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

A man clenches his fists with glee having seen the share price go up on the computer screen in front of him.
Cryptocurrencies

Why did the Bitcoin price just rocket to another all-time high?

At new record highs, Bitcoin now has a market cap of almost US$1.8 trillion.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

Why cryptocurrencies like Bitcoin and Ethereum are shooting for the moon today

Crypto investors just sent the Bitcoin price to new all-time highs. But why?

Read more »

A man with his head on his head because of the falling cryptocurrency prices on the screen.
Cryptocurrencies

What's happening with the Bitcoin price amid the stock market volatility?

Bitcoin investors have been on a wild ride in August.

Read more »

bitcoin coins falling
Cryptocurrencies

Think the ASX has been volatile this week? Wait until you see the Bitcoin price

Bitcoin has had the volatility of a yo-yo over the past week...

Read more »

A businessman carrying a briefcase looks at a square peg or block sinking into a round hole.
Technology Shares

Is this the real reason Block stock is down 11% in a week?

Block's big drop this week might have an unusual culprit...

Read more »

Bitcoin ETF digital illustration.
Cryptocurrencies

Bitcoin ETF hits the ASX. Here's what you need to know

History is being written on the ASX today as it welcomes its first Bitcoin ETF.

Read more »

Concept image of Bitcoin and hand using laptop.
Cryptocurrencies

Buying Bitcoin? Here's why Block's Jack Dorsey says AI will drive global adoption

Moving forward, Block plans to reinvest some of its monthly profits into Bitcoin.

Read more »

A man holding a mobile phone walks past some buildings
Cryptocurrencies

The Betashares Crypto Innovators ETF (CRYP) is up 37% in a month. Is it too late to buy?

Looking at the CRYP ETF? Here's my take on whether it's too late to buy.

Read more »