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Author: Admin | 2025-04-27
That 100% of deposits from SVB are secure and available as of time of writing. USDC has also recovered, and is now trading at just under the dollar. To understand more about the incident, you can check out Circle's statement here. USDC ReservesUSDC’s reserves control the issuance and redemption of USDC stablecoin. Circle’s July audit report conducted by Grant Thornton reports that USDC’s stablecoin is backed by over $54.6 billion, an excess of about $100 million, relative to circulating USDC. USDC reserves hold cash and short-term U.S. government treasury bills only.Risks of USDT and USDCStablecoins are touted as “cryptocurrency’s doomsday”. Critics speculate a dramatic event should any of the big stablecoin projects crumble. A similar scenario to that seen during the LUNA (now LUNA classic) and UST (now USTC) collapse. USDT and USDC are the main recipients of the ‘doomsday’ speculations. Here are the most popular arguments against the two biggest stablecoins;Fraudulent Information on Banking and ReservesThe trust level for USDT and USDC is somewhere below the level of trust for native cryptocurrencies. The constant minting of billions of dollar-pegged cryptocurrencies with vague explanations has eroded the trust between the USDT team, the USDC team, and the rest of the crypto space, where “Tether printer go brrr” is a popular phrase that embodies the frequent printing of stablecoins by the stablecoin giant.USDC and USDT are both subjects of continuous controversy. Questions arise regarding the legitimacy of their minting process and if these minted coins are fully backed as stated, especially in the case of Tether, which has yet to deliver on its promised audit since 2017.USDC reserves are considered to be more transparent than Tether’s. The monthly audit reports and the reserve compositions make it easier to track the collateralization of the USDCs minted by the institutions, while the basket of commodities in Tether’s reserves makes its audit report even more complicated.Market ManipulationA couple of investigative journalism reports on USDT have shone the light on how printed USDT is utilized by exchanges. These reports are unverified but provide a base for the allegations that printed USDTs are used to artificially
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