Would the USDC stablecoin be in danger of failing after Terra (LUNA)? That was at least what the rumors suggested. They are only rumors, though! This was made crystal apparent by Circle CEO Jeremy Allaire in a tweet. He put an end to the rumors by discussing openness, reliability, certifications, and the multiple audits that USDC undergoes on a regular basis.
Concerning USDC, no worries
Mr. Allaire wrote in his piece that he completely comprehends the anxiety felt by cryptocurrency consumers. They want to avoid a repeat of the circumstance they encountered with Terra. The CEO added that current developments in the bitcoin market logically support the worry that investors are experiencing.
“Considering the history of scammers in the bitcoin industry, it is fair that some people are paranoid. We have consistently made an effort to hold ourselves to the best standards possible. This has made it possible for us to collaborate with regulators, top insurance providers, and prestigious financial institutions.
The CEO did, however, imply that the reserves of USDC are entirely distinct from those of USDC in the lending market. Investors have nothing to fear as a result, in his opinion. According to Allaire, regulations safeguard them, and the USDC’s stability benefits them.
Circular has no issues.
Mr. Allaire also addressed concerns about Circle Yield, the newest offering from his business. He clarified that the business would shortly tweet a link to an article in which the usage of this product would be discussed. The fact that Circle Yield is “regulated and sold as a security for approved investors” was also disclosed by him. Last but not least, the CEO continues, “Circle Yield has no problem.”
The CEO concluded by saying, “Circle is in the best financial shape it has ever been, and we will continue to expand our transparency. We are particularly excited by the developing regulatory frameworks for stablecoin issuers, which should increase public trust in companies like Circle.
According to the CEO of Circle, USDC is not in risk of imploding the way Terra (LUNA) did. Additionally, he thinks that his company’s stability and sound financial standing serve as an assurance that investors have nothing to worry about.
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