USDC is not in danger of collapsing
2 min read
so it looks like one twitter account is responsible for most of the FUD coming out about USDC in the last couple of days. @CryptoInsider23 has made multiple post about the coming collapse of USDC, the biggest post has the following image attached.
these post have been countered by other people calling it out as FUD and accusations of someone possible trying to short USDC, one article about it below.
https://news.coincu.com/104263-circle-suffering-fud-is-collapsing/
some reasons why USDC is safe (taken from Forbes article)
“Centre works with auditors and government regulation with a transparent and clear description of the reserves available to back the peg to the U.S. dollar,” Bumbera says. You can even view monthly reports of these reserve balances, including how much USDC is in circulation and its equivalent value in U.S. dollars. Auditing firm Grant Thornton releases USDC’s attestations. As of May 2022, Circle announced that the company would provide weekly attestation reports. They help build trust in USDC, as they disclose the precise amount of actual funds backing the stablecoin. When you buy 1 USDC, a new USDC is minted. And when you choose to sell 1 USDC for fiat currency, the coin is “burned” when you make the transaction.
Screen shots of reports below incase you don’t want to click on the link
So it would seem that USDC is not in any danger of collapsing but then again I could be completely wrong so Make your own decision on the matter. One thing is certain, if USDC collapses it’s taking the rest of the crypto market down with it.
Not Financial Advice!
submitted by /u/Odlavso
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