Ok so, I’m planning to stake stablecoins on Zunami but I’ve been seeing a lot of FUD about USDC failing sooner or later. But, Circle CEO Jeremy Allaire responded to the USDC's concerns by providing links to multiple reports that explain how the company addresses the issues raised. According to one blog post about USDC's stability, transparency, and trust, the stablecoin is still backed by the USD and its equivalent value assets. They include cash and government obligations with short maturities (U.S. treasuries).
According to Circle's report, its total reserves are $55.7 billion, divided into two parts: $42.122 billion in Treasury bonds and $13.5 billion in cash invested in US-regulated financial institutions because ever since Terra’s downfall people have requested other stables to be more transparent and of course put stables on the edge. So, Isn’t this enough proof that USDC is proving itself that what happened to Terra won’t happen to them?
I have a lot more to say about USDC, but that will have to wait for another post. Tether, on the other hand, has received a lot of attention as a result of its de-peg following the Terra crash. The demise of the TerraUSD (UST) stablecoin has heightened interest in other tokens. Tether maintains a 43 percent market share as the leading stablecoin. Its supply has fallen by 19% since its all-time high of 83 billion USDT in early May. According to the firm's transparency report, there are currently 67 billion USDT in circulation. Tether has been embroiled in legal and financial wrangling for much of its brief existence.
There have been lawsuits over alleged market manipulation, charges by the New York State attorney general that Tether lied about its reserves, costing the firm $18.5 million in fines in 2021, and this year, questions raised by US Treasury Secretary Janet Yellen about USDT's ability to maintain its peg to the US dollar. So that’s why many people are saying that USDC is better than USDT despite USDT being more popular or well known. I also have a feeling that these recent events are why stablecoin staking is frowned upon.
if Circle or Coinbase fails, it is impossible to be certain that USDC will keep its value.
A lot of people claim Coinbase is in trouble amid rumors of a crisis. Coinbase’s Developer even cleared that they don’t have a liquidity crisis and the Co-founder said that it was just adjusting. Well because a lot of people are scared. Recent FUD is understandable. Who would want their money to go all down the drain? A lot of people even though that USDC was de-listed and won’t be available on Coinbase anymore.
Lastly, Do you agree that if USDT fails, every other stablecoin will fail as well? Do you think Stablecoins will fail?
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