USDC in danger? The crazy rumor denied by the boss of Circle

Model students, and nothing more – After the TerraUSD (UST) falls to zerothe founder and CEO of Circle, Jeremy Allairecannot ignore rumors who attack theUSD coin (USDC).

Nerves on edge: the USD coin looking its best

“It is understandable that some users are paranoid. »

Jeremy Allaire said it all… or almost.

L’collapse of Terra will have left deep wounds and still open, in the minds of many investors who doubt the real ability of stablecoins to maintain parity with fiat currency.

All rotten! Bear markets helping, rumors that announce the next disaster in the sector gain more credence. The apocalyptic hearsay targeted theUSDC. ” Prepare yourselves “they said. ” The end is near “.

The context forced Jeremy Allaire to come out of his silence to refute these allegations. Circle and USDC would do just fine. The demonstration is in a series of tweets from July 2.

The first publication contains a link pointing to a blog post recalling the fundamentals : “How to be stable”.

Jeremy Allaire reassures his investors – Source: Twitter

Jeremy Allaire comes out of the classics to calm the anxiety of investors. The USDC is guaranteed by reservesmaintained and managed by major US financial institutions, including BlackRock and Bank of New York Mellon.

The dunce cap, we pass our turn! Other posts feature Circle and the USC coin as good students. Increased transparency, regulatory compliance, leading partners: the copy is perfect. Maybe a little too much.

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Circle Yield: a disturbing air of deja vu

“The bottom line is that Circle Yield is regulated. »

Jeremy Allaire surely closed the door a bit too quickly on this point.

This bullion product built with USDC yet contains ingredients that recall ancient disasters : promises of a better return compared to traditional bank rates, an investment secured by bitcoin (BTC).

Nay! Absurd generalization! Circle Yield is “over-collateralized”It is “offered as a security to accredited investors only”.

The reassuring speeches, the cryptosphere knows them. They have not, however, prevented tragedies from occurring in the industry.

“We will share a blog post this week” concerning Circle Yield, underlines Jeremy Allaire. Rather than an awkwardly oversynthesized wholesale or brief, a technical note is certainly more likely to convince the more skeptical of a Circle Yield, which would pose no risk to the USDC.

TerraUSD is dead, but his legacy is heavy to carry for other stablecoins, such as USDC or Tether (USDT) which also raised concerns.

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