(Tether is involved in more Bitcoin transactions than the US dollar is.) “It can be construed as part of a systemic risk,” Li says. “But I think the risk is overblown relative to what most people think.” In his opinion, the real risks are people being out of jobs, and then unable to pay their mortgages — as well as the risks of climate change. What if a digital currency wipeout could injure — or even destroy — the entire cryptocurrency ecosystem? Lately, there’s been a focus on stablecoins, the quiet power players of the cryptocurrency space. All of the USDCs in circulation are actually ERC-20 tokens, which can be found on the Ethereum blockchain. One of the biggest advantages here is how it can then be integrated with Ethereum-based applications.
Check this page, or the News and Announcements box on the homepage, for the latest official news and announcements released by the court. You can also access archived news and announcements from this page. Crypto lending company Celsius Network confirmed in a live stream today that it lost funds in the BadgerDAO hack earlier this week. Crypto exchange BitMart has reportedly been hacked for $100 million, according to security researchers PeckShield. Institutional selling triggered a sell-off in the crypto market, insiders tell The Block. USDC is the second-largest stablecoin in the market, after Tether .
How does USDC make money?
It makes money through the trading of bitcoin and other cryptocurrencies in over-the-counter (OTC) markets and at digital exchanges.
Now, he could instead exit his Bitcoin trade into a dollar-pegged cryptocurrency. The relatively quick transaction would mean that his funds would be available to go into another investment right away. If Mars is trying to do rapid trading, he might choose to do this instead of moving back and forth between the traditional banking system and cryptocurrency. Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
Omenics measures the market sentiment by calculating the sentscore, which aggregates the sentiment from news, social media, technical analysis, viral trends, and coin fundamentals-based upon their proprietary algorithms. US wary of CBDC as China enacts digital currency law for DCEP rollout. A Nigerian crypto exchange, Busha, recently raised over $4 million in a funding round led by Jump Capital. Busha, a Nigerian cryptocurrency exchange, is reported to have raised a $4.2 million seed funding round recently. Hedera is now offering a $2.5 billion ecosystem grants program destined to build applications using Hedera’s blockchain. Some of these funds will surely be directed to defi applications, that will have now much more utility with a known, established stablecoin present in the platform. One of them is the peer-to-peer payment services company Circle, while the other is the Coinbase cryptocurrency exchange.
The second cryptocurrency by market cap has reduced excess in terms of speculation while increasing its levels of adoption as reflected by its rise in addresses. This network alone could be “accelerating the digitalization of money”. The company has been forming new partnerships to expand the reach of its key product, stablecoin USD Coin . Thus, the firm seeks to increase their levels of transparency, the reserves that back USDC, and the business created around this Ethereum based stablecoin, Allaire said. Yes, according to Fitch, one of the Big Three credits rating agencies. Let’s say there’s a run on Tether tokens, and Tether has to suddenly sell its commercial paper.
As of the time of publication, the last attested month was for April 2021—and even that is dated June 9, 2021. If Tether is a concern, then USDC, which is run by Centre and Coinbase’s Circle, undoubtedly is, too. With the now-public Coinbase’s fate suddenly tied up in both—and with the announcement that Circle will be going public later this year—an enormous amount of other people’s money is at stake. Tether and USDT have been a lightning rod for stablecoin criticism. As the longest-surviving, it’s by far the largest which also means the question of whether each coin is backed is highly important.
In addition to Hedera, Circle now supports USDC across the Ethereum, Algorand, Solana, Stellar and TRON blockchains, with more to come. This multichain support reinforces Circle’s commitment to growing the internet economy and creating network effects that will establish USDC as the standard means of value transfer across the internet. Built around a core pillar of environmental sustainability, the Hedera network has achieved carbon neutrality and is committed to carbon negative network operations. USD coin is available on the Optimism layer 2 scaling product for the Ethereum network.
What Is The Value Of Usd Coin?
From the start of October 2020 to today, it grew from $2.5 billion to more than $26 billion. If each USDC truly is backed, that means in less than a year, over $23 billion has poured into Centre’s coffers from people wanting to purchase USDC. Have worked in the Tech Industry in multiple web based or technology sector since 1997. Anything related to technology interests me and in wide variety of topics and am Tech News Junkie.
For instance, of all the stablecoins created in 2015, 80 percent failed, according to Mizrach’s research. That makes the failure rate of stablecoins comparable to other digital assets. According to it, about half of the $62.8 billion in assets are held in commercial paper and certificates of deposit. A quarter of the assets are in Treasury bills, a significant increase from the last report — which may reassure some people, since T-bills have a reputation as very safe assets. According to the accounting firm Moore Cayman, Tether has more money in its reserves than is required for redemption. Our buddy Mars can borrow money from an exchange such as Kraken, which will use its own funds to help execute the trade. But Mars has to put up some collateral for the loan, and stablecoins can be useful for that.
How Is The Usd Coin Network Secured?
It is built on the open source fiat stable coin framework developed by CENTRE, and Circle is the first of several forthcoming issuers of USDC. USDC is designed to minimize USD Coin price volatility and it does so by ensuring that every unit of USDC is only created when a corresponding US Dollar is deposited into a reserve bank account.
— Coin-News24 (@news24_coin) November 30, 2021
To help create its new stablecoin, Circle raised $110 million in May 2018 in a round led by China-based cryptocurrency giant Bitmain. It was, at the time, the biggest venture capital round raised by a cryptocurrency or blockchain company to date. A commonly used token standard, ERC-20 makes it easy for wallets, exchanges and other smart contracts to interact with the token. This helps Circle create an instant ecosystem for the token. “This integration aligns well with the growing tokenized economy on the Hedera network and will help drive new projects. We look forward to working with the community to bring these applications to market.”
Who Are The Founders Of Usd Coin?
With USDC’s availability on Hedera, the network hopes to bring decentralized finance applications to its platform. Last month, the Hedera Governing Council earmarked 10.7 billion HBAR tokens (worth nearly $4 billion at current prices) toward the development of the Hedera ecosystem, including for DeFi applications. MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis.
If you don’t like seeing the value of your portfolio swing wildly, you might want some lower-volatility cryptocurrencies. The Short-Term Technical Ranking evaluates a cryptocurrency’s trading over the past month. The fall in the overall score can also be seen in the number of coins in the positive zone, there being three such coins, down by one from a week ago. Bitcoin continues to lead here with 7.3, followed by ethereum’s 6.8, and polkadot’s 6.3.
Usd Coin Usdc Crypto Chart
Right now, there’s no standardized way for stablecoins to disclose the assets that back them. It seems like an obvious target for regulators, but there’s also a way to do an end run around the needs for stablecoins at all. In fact, the way to get rid of stablecoins might just be… the dollar but digital. “This increases the utility and liquidity of digital assets while also enabling more consumers to participate in the digital economy. The impact of this partnership is expected to grow as more wallets and companies join the Stellar network,” said the company. “As crypto and digital currencies rise in prominence, we’re especially optimistic about the potential of stablecoins as a method to streamline cross-border payments,” said Alex Holmes, chairman and CEO of MoneyGram. A stablecoin is essentially a type of cryptocurrency that is linked to a specific currency.
Imagine an investor — we’ll call him Mars Vulrich — wants to lock in some profit he made in Bitcoin. Now, our friend Mars can exit the trade back into US dollars and send that to his bank account, but it’ll take a couple of days. Some of that delay is that Mars has to comply with anti-money laundering laws to exit cryptocurrency back into the US dollar. During that time, if Mars sees a cool opportunity to get into another cryptocurrency investment, he won’t be able to reach that money. This investigation doesn’t particularly worry Alan Konevsky, the chief legal officer of tZERO, a security token trading platform.
Besides tether, all other coins are within the 5-5.8 territory. Money Flow Uptick/Downtick RatioMoney flow measures the relative buying and selling pressure on a stock, based on the value of trades made on an “uptick” in price and the value of trades made on a “downtick” in price. The up/down ratio is calculated by dividing the value of uptick trades by the value of downtick trades. Net money flow is the value of uptick trades minus the value of downtick trades. Our calculations are based on comprehensive, delayed quotes. Shares Sold ShortThe total number of shares of a security that have been sold short and not yet repurchased.Change from LastPercentage change in short interest from the previous report to the most recent report. Exchanges report short interest twice a month.Percent of FloatTotal short positions relative to the number of shares available to trade.
- A stablecoin is essentially a type of cryptocurrency that is linked to a specific currency.
- The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
- Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes.
- Circle co-founders Sean Neville and Jeremy Allaire spelled out the details in a blog post.
- Bitcoin, Bitcoin Cash, Ethereum, Litecoin and other popular cryptocurrencies can be purchased with U.S. dollars using Coinbase or BlockFi.
With this, MoneyGram will be able to leverage the native version of Circle’s USDC on the Stellar blockchain to move funds internationally much more quickly. As per the announcement, United Texas Bank will serve as a settlement bank, filling the missing link. The use of Stellar Blockchain in the process also ensures very low fees for the consumer and access to physical locations to convert USDC to cash and vice versa. The collaboration also ensures lightning-quick settlement of payments for MoneyGram.
- These aren’t banking products carrying Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protection to make you whole if things go bust.
- Coinbase made a mistake by failing to clarify the backing for USD coin on its website fast enough, COO Emilie Choi said Monday.
- One of them concerns transparency — and giving users the assurance that they will be able to withdraw 1 USDC and receive $1 in return without any issues.
- As of September 26, 2018, dollar-pegged USDC is now trading on Poloniex, the crypto-to-crypto exchange Circle acquired in February 2018, and on Circle Trade, the company’s over-the-counter platform.
- But Mars has to put up some collateral for the loan, and stablecoins can be useful for that.
- A Nigerian crypto exchange, Busha, recently raised over $4 million in a funding round led by Jump Capital.
- USDC is commonly bought with Bitcoin — and if it’s your first time buying Bitcoin, be sure to check out our comprehensive guide here.
All it will take to pop is for enough people to want to redeem their stablecoin for USD at the same time, and all that will take is the inevitable regulatory crackdown which truly got underway with the NYAG’s fine of Tether. When that day comes, the innocent investors who swapped their dollars for USDC will discover there is nothing to redeem, and their money has simply disappeared into the ether. USDT and USDC will go up in smoke, together with every project that has relied on the injection of fake money to sustain themselves. There are already several Avalanche-based projects on the market. One of them is the Pangolin DEX decentralized crypto exchange.
By increasing their levels of transparency and compliance, more institutions could feel attracted to Ethereum, and especially its DeFi sector. Ultimately, the company will attempt to meet the transparency standards required by the U.S. At the same time, it aims to tackle new regulatory and self-governance models. U.S.-based company Circle has announced its intention of going public via a special purpose acquisition corporation . Jeremy Allaire, co-founder, and CEO at Circle, stated via his Twitter account that the decision to go public has become a critical step for the firm. Well, there’s a possibility that regulation of cryptocurrency changes — certainly the rumblings from the Treasury Secretary and the head of the SEC suggest that regulatory changes are coming.
Author: Joanna Ossinger