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What is USDC cryptocurrency?
USDC token was released in September 2018. His issuer was the Center Consortium, which was founded by Coinbase and Circle.
As of the summer of 2022, the USDC takes second place in the ranking of stabricons in capitalization after USDT (Tether). During 2021, the market value of the asset, according to Coingecko, increased more than 10 times, from $ 4 billion to $ 42.4 billion and reached almost $ 55 billion by the end of June 2022.
USDC is a centralized stablecoin and is popular for several reasons. The market participants trust the asset issuers: Circle and Coinbase – large and regulated financial institutions that support high work standards and comply with laws.
In addition, they managed to create a transparent system of reporting on USDC reserves, which are the basis for reliability and trust in centralized steablecoins. The funds necessary to ensure the price of USDC are stored on the balance of the largest banks in the United States and undergo regular auditing an independent auditor.
According to ARCANE ResEARCH analysts, by the fall of 2022, USDC will surpass its main competitor – Tether (USDT) – according to the indicator of market capitalization.
Why do you need USDC?
Steabelcoins are created to reduce the risks of the volatility of the cryptocurrency market. Therefore, they are a suitable tool for onchain transaction and capital storage.
These cryptoactives are useful for investors and traders: they use stablecoins for calculations on trading platforms, store a profit made from trading digital assets, as well as part of the investmentportfield.
Additional advantages of stable coins, such as USDC, are revealed in the field of decentralized finance. Token is used in various trading protocols such as AAVE, Celsius Network, Compound and others.
Which blockchains are available in USDC?
Initially, the USDC was launched in the Ethereum blockchain in the form of the ERC-20 token, but since then it has been supporting other networks:
- Flow; ; ;
- Tron; (through Cross-Most).
What is the USDC?
Centralized issuer USDC controls reserves. As of July 2022, they consisted of three quarters of the short -term treasury papers of the United States and for one quarter of cash dollars. All these funds are stored in accounts in leading financial institutions of the United States: BlackRock, BNY MELLON, Bank of New York and others.
Information about USDC reserves – part of the public financial statements of the USDC issuer. Accounts are checked by the American accounting company Grant Thornton LLP, which publishes open -access certification of reserves that support the USDC binding to the dollar. During the audit, the accuracy, completeness and composition of reserves, as well as information on internal control, ensuring the accuracy of financial statements are checked.
Monthly reports on reserves are provided to the US Securities and Exchange Commission (SEC), since at the end of 2022 Circle intends to become a public company.
After Terra collapse, Circle Director Jeremy Allaire published a series of messages aimed at strengthening confidence in USDC. In one of them, he promised that in the future, reports on security would be released daily.
What is Euro Coin (euroc)?
At the end of June 2022, Circle introduced a new stablecoin called Euro Coin (Euro), the cost of which is tied to the euro.
The token is released on Ethereum and is available on the Bitmart, Bitpanda, Cex platforms.IO, FTX and Hitbtc. The asset is also traded on the decentralized exchanges of Curve and Uniswap. According to Coingecko, on August 15, the capitalization of stablecoin is more than $ 5.3 million.
EuroC reserves are stored on accounts denominated in euros. Castodians of funds – Fireblocks, Anchorage Digital and Cybavo.
For which they criticize the project?
In early August, the US authorities entered the site of the Tornado Cash blockchain mixer, as well as related cryptocurrency addresses.
Following this, Circle blocked the USDC address of Tornado Cash wallets, which stored over 75,000 tokens.
In the crypto community, this decision was criticized, and the co-founder of the Defi Protokol Makerdao Rune Kristensen offered to exchange the USDC worth $ 3.5 billion, which serves as a decentralized DAI stabelcoin on Ethereum. Vitalik Buterin opposed this idea.
At the beginning of 2022, along the extreme two blockchain projects-Nomad and Slope in which Circle invested, were hacked by hackers. The company excluded the impact of incidents on USDC reserves.