S&P Report Reveals Unstable Ground Beneath Stablecoins USDC & DAI
A recent report from S&P Global highlighted the unpredictability of what are supposed to be the digital currency world’s safe havens — stablecoins. Analysts Dr. Cristina Polizu, Anoop Garg, and Miguel de la Mata unveiled findings that show USD Coin (USDC) and Multi-Collateral Dai (DAI) experiencing significant depegging events, a phenomena where these coins deviate from their $1 value, casting a shadow on their stability credentials. The Stablecoins covered under their report included Tether (USDT), USD Coin (USDC), Multi-Collateral Dai (DAI), Binance USD and USDP Dollar (USDP)
A Sudden Dip
The research shows USDC and DAI have strayed further and more frequently from their $1 peg compared to rivals like Tether (USDT) and Binance USD (BUSD). In March 2023, a banking crisis led by the collapse of Silicon Valley Bank (SVB) saw USDC plummet to $0.87. DAI wasn’t far behind.
This was not an isolated incident. Over the past two years, USDC and DAI have spent more time below $1 compared to Tether and Binance USD. But why is this happening?
The March calamity was linked to the failing health of three U.S banks, including SVB. At the time, USDC had $3.3 billion of its reserves stashed at SVB, and DAI had extensive USDC holdings backing it as well. When the banks crumbled, so did the value of USDC and DAI.
Also Read – Visa Accelerates Crypto Adoption With USDC Integration on Solana
Stabilizing the Unstable
“Maintaining the peg and a stabilization mechanism requires good governance, adequate collateral and reserves alongside liquidity, market confidence, and adoption,” noted Dr. Polizu and her colleagues in their report. The real-world calamities exposed the frailties in these systems, particularly their sensitivity to market volatility and governance challenges.
Tether’s is a Hero
Tether, which has often been the poster child for stablecoin controversy and regulatory scrutiny, has emerged as a paragon of stability, according to the S&P report. Since the beginning of the year, Tether’s supply has soared by 25%, giving it a dominant market share of 67%.
For anyone who thought stablecoins are the crypto-equivalent of stashing money under a mattress, the new findings serve as a wakeup call. The latest data on stablecoins shows that there’s nothing entirely stable about digital assets — not even the ones that claim to be.
Visa Accelerates Crypto Adoption With USDC Integration on Solana
Visa is strengthening its embrace of cryptocurrencies by expanding support for USDC stablecoin settlements on the high-speed Solana blockchain network.
On Tuesday, Visa announced it was one of the first major financial institutions to leverage Solana for scaling stablecoin settlements. The move builds on previous USDC integrations by Visa on Ethereum.
Visa is also initiating USDC settlement pilots through merchant acquirers like WorldPay and Nuvei. Their business clients can now opt to receive settlements in USDC stablecoins rather than fiat currency.
According to Visa’s head of crypto, Cuy Sheffield, adopting stablecoins and public blockchains will enhance the speed of cross-border payments and modernize offerings.
Visa is trying to leverage stablecoin demand with Solana
The integration highlights the traction blockchain technology is gaining in traditional finance. As research firm Bernstein predicts, stablecoins could grow into a $2.8 trillion market over the next 5 years as platforms utilize them for value exchange.
For Visa, the Solana rollout reinforces its position at the vanguard of embracing cryptocurrency infrastructure. While risks around compliance persist, Visa is prudently exploring use cases that exploit blockchain strengths.
Solana’s high throughput makes it compelling for transactions, despite recent concerns around stability. Optimizing stablecoin settlement is a prime demonstration of blockchain capabilities for improving legacy systems.
With the lines blurring between decentralized and traditional finance, expect more household names to follow Visa’s lead. Stablecoins appear poised to become a critical utility bridging the two worlds. And beyond payments, tokenized assets on blockchain networks promise to unlock trillions in fresh financial opportunities. Visa is gearing up early for this blockchain-powered future.
Binance sells $100 million USDC for Bitcoin and Ethereum!
Binance, a leading cryptocurrency exchange had reportedly sold USD Coin (USDC) for Bitcoin and Ethereum after the collapse of the Silvergate Bank, according to a report by Proof of Research (PoR). The move by Binance came after the bank experienced outages that made its network inaccessible for a short period of time. As a result, Binance allegedly sold $100 million worth of USDC in exchange for a mix of Bitcoin and Ethereum. The PoR report cited data from Glassnode, a blockchain and crypto analytics platform, which showed that Binance had moved the equivalent amount of USDC from its wallets a day after the Silvergate outage.
Binance Stuns Market with USDC Sell-off: Unraveling the Motives Behind the Move
In a recent Q2 earnings call, Coinbase CEO Brian Armstrong startled everyone by revealing that Binance, a major cryptocurrency exchange, had sold its entire USDC stash. Many are questioning why Binance would do this and how it will affect the Bitcoin market.
In simple terms, USDC is a digital currency that’s supposed to be equivalent to one US dollar. It’s used for trading and transactions within the cryptocurrency world, providing a more stable option compared to the often volatile prices of other cryptocurrencies like Bitcoin or Ethereum.
Interestingly, this news comes as a bit of a surprise because Binance was also holding a significant amount of USDC, which is owned by a group of companies including Coinbase. However, things get more complicated when we look at the bigger picture.
It is quite noteworthy that, the value of USDC keeps on decreasing in recent months. At the beginning of this year, the total amount of USDC in circulation was worth around $44.5 billion. But now, it’s down to just about $26.06 billion. The partial reason behind this drop was that a government agency stepped in to prevent a crisis involving the company behind USDC.
What is the Catalyst Behind Selling Call?
Moreover, the cryptocurrency space is buzzing with theories about why Binance decided to sell off its USDC. Some experts are suggesting that market pressures and the rise of new competitors might have played a role. For instance, another stablecoin called TUSD and FDUSD has been introduced by Binance recently, which could be related to their decision to unload USDC. While Paolo Ardoino, CTO of Tether (USDT), dropped a hint on Twitter about increasing market pressures and the emergence of new competitors.
On top of this, Chase Coleman, who’s a big player in investment management, has also added to the speculation. He hinted that Binance and its allies might be shifting their strategy, moving away from USDC to other stablecoins that they have more control over.
Binance has high hopes with TUSD?
Looking at the other report by a company called Kaiko Binance had been offering free trading for specific pairs of cryptocurrencies, which attracted more customers. Even though they later stopped this free trading strategy due to costs, Binance managed to increase its share of the market compared to other exchanges.
Right now, Binance seems to be putting its focus on another stablecoin called TUSD. They are promoting it heavily and making it easy for people to trade using TUSD. This shift in principle could be a reason why Binance decided to sell its USDC holdings.
The situation is like a chess game with unclear moves. For now, it seems like the value of USDT, another stablecoin, is slightly off track, but experts are keeping an eye on it to see if there are any major concerns.
USDC vs USDT- The Best Stablecoin & Will Tradecurve Have Its Own Stablecoin?
The stablecoin market capitalization sits at $126B with a trading volume of $33B, causing Tether (USDT) and USD Coin (USDC) interest to skyrocket. In this article, we will go into further detail on these stablecoins. Moreover, we will explore the potential for Tradecurve (TCRV) to introduce its stablecoin.
Summary
- Tether mints new 1B USDT coins on Tron
- USD Coin quantity drops by $100M
- Tradecurve to surge by 50x before its presale ends
What Is Tether (USDT)?
Tether (USDT) is a popular cryptocurrency classified as a stablecoin. Unlike many other cryptocurrencies, the Tether price is pegged to the value of a traditional fiat currency. It has gained popularity in the cryptocurrency market due to its stability and ability to trade between multiple currencies seamlessly.
In recent Tether news, over 1B USDT coins will be minted on Tron. This minting of USDT is a part of Tether’s “inventory replenish” operation on Ethereum, according to Paolo Ardoino, CTO of Tether.
In the past, the Tether coin has faced scrutiny regarding its transparency and reserve backing. However, USDT still maintains a dominant market share and widespread usage within the crypto industry.
What Is USD Coin (USDC)?
USD Coin (USDC) is another widely-used cryptocurrency that falls under the category of stablecoins. As the name suggests, USD backs each USDC, held in reserve by regulated financial institutions. Consequently, ensuring that the USDC price remains stable and tied to the USD at a 1:1 ratio.
The circulating quantity of USDC stablecoin has dropped by almost $100M during the last week. According to Circle, USDC redemptions totalled $1.4B during the seven days last Sunday, surpassing the $1.3B in new coins.
One key difference between USDC and USDT is its transparency and regulatory compliance. USDC is known for its strong adherence to regulatory standards, with regular audits and clear transparency regarding its reserves. Thus, USDC may have a brighter future.
Tradecurve (TCRV) and the Potential for Its Own Stablecoin
As a hybrid exchange that aims to revolutionize decentralized finance and trading, Tradecurve has garnered attention for its innovative approach. While there has been no official announcement regarding Tradecurve launching its stablecoin, many platforms are exploring the idea of introducing stablecoins. They often do this to enhance liquidity and ease of trading.
Benefits of Stablecoins for the Trading Platform
The introduction of a stablecoin by Tradecurve would offer several advantages. Firstly, it could provide users with a reliable and liquid asset to trade against other cryptocurrencies. Additionally, it could help mitigate the impact of market volatility and provide stability to the platform’s ecosystem.
This ecosystem contains plenty of components. One component is the copy trading feature, allowing users to subscribe to other traders and replicate their trades. Furthermore, it encompasses automated & AI trading bots users can subscribe to for increased profitability. These features have attracted over 16,000 users to register for Tradecurve so far.
Most importantly, Tradecurve places a particular focus on anonymity and efficiency. Tradecurve removes sign-up KYC checks and allows users to trade all derivatives on one account. Therefore, in complete privacy, traders can access multiple financial markets like the Forex one (valued at $753.2B in 2022).
TCRV – Long-Term Growth Potential
At the core of the platform’s ecosystem lies the TCRV utility token. Holding this token brings governance, staking rewards, and more. Currently, TCRV has a value of $0.025. Those who purchased it early on have gained a 150% ROI.
Besides these gains, those who buy the TCRV token now will also capitalize on its long-term growth. Unlike USDC and USDT, TCRV could see gains soon as experts forecast a 50x jump before its presale ends. If you wish to purchase this potential blue-chip token, sign up for it using the links below.
For more information about the Tradecurve (TCRV) presale:
CoinEx Broadens Its Futures Trading Portfolio With Introduction Of USDC Contracts
HONG KONG, July 18, 2023 /PRNewswire/ — CoinEx, a leading cryptocurrency exchange, is thrilled to announce the expansion of its futures trading offerings with the inclusion of USDC contracts. Building upon its commitment to meet the evolving trading needs of its diverse user base, CoinEx have listed two highly anticipated linear contracts: BTCUSDC and ETHUSDC. This strategic move signifies a major stride towards diversifying our trading products and enhancing the overall futures trading experience for our valued users.
According to data from DefiLlama on July 17, 2023, USDC has a market cap of $27.026 billion in the stablecoin market, accounting for a 21.23% share, second only to USDT (65.82%). With its increasing application in DeFi, USDC has gained growing popularity among users.
“By embracing USDC futures contracts, we are confident in delivering enhanced trading experiences and further solidifying our position as a reliable partner to our valued users,” said Haipo Yang, founder of CoinEx.
As a type of crypto derivatives, futures contracts allow investors to profit from price fluctuations by buying long or selling short. CoinEx futures contracts boast advantages such as risk hedging, increased capital utilization, and a wide range of investment choices. CoinEx futures help users mitigate the impact of volatile crypto prices on investment returns. Additionally, with the leverage of futures trading, investors can adjust the leverage and trade with amplified capital. Last but not least, CoinEx provides abundant futures trading markets, diversifying investment portfolios for its users.
Similar to the USDT futures contracts, the newly launched USDC futures contracts on CoinEx come with no expiration or settlement dates, therefore investors may close the position or hold it in light of market conditions. Just like USDT futures contracts allow investors to buy long or sell short using USDT as margin, USDC can be used as margin of USDC futures contracts. When trading USDC futures contracts, investors settle all margin, profits, and losses in USDC. For example, the market price, position profits, and margin for the BTCUSDC contract on CoinEx are all calculated in USDC. Furthermore, with USDC, users can trade in multiple USDC futures contract markets on CoinEx without any costs for transfer of positions, which makes trading more flexible.
As of now, more than 100 linear contract and inverse contract markets have been supported on CoinEx. Over these years, the exchange has continuously optimized futures contract products, aiming to simplify the futures trading process for users. At the same time, it has been consistently supporting more futures contract markets to meet the trading needs of more users. In the future, CoinEx will list more USDC futures contracts based on market conditions and user demand, providing users with a diversified selection of futures trading options.
About CoinEx
Established in 2017, CoinEx is a global cryptocurrency exchange committed to making trading easier. The platform provides a range of services, including spot and margin trading, futures, swaps, automated market maker (AMM), and financial management services for over 5 million users across 200+ countries and regions. Founded with the initial intention of creating an equal and respectful cryptocurrency environment, CoinEx is dedicated to dismantling traditional finance barriers by offering easy-to-use products and services to make crypto trading accessible for everyone.
Hong Kong Wants To Compete With Tether And USDC, Urges To Issue A Stablecoin
As the crypto space sees a rise in popularity and global adoption, Hong Kong is making waves with its forward-thinking approach. The city-state is not just embracing the digital currency revolution, but it’s also aiming to become a significant player. According to Wu Blockchain, Hong Kong received a proposal to issue its own stablecoin, a move that could see it compete with established giants like Tether (USDT) and USD Coin (USDC).
HKDG Stablecoin Aims To Strengthen Hong Kong’s Blockchain Plans
A fresh policy recommendation is urging the government of Hong Kong to introduce its own stablecoin, named HKDG, which would be supported by its foreign exchange reserves. This move is aimed at rivaling existing stablecoins like USDT and USDC.
The proposal is a collaborative effort between Wang Yang, the Vice Chancellor of the Hong Kong University of Science and Technology and Chief Scientific Advisor of the Hong Kong web3 Association, angel investor Cai Wensheng, BlockCity founder Lei Zhibin, and Ph.D. student Wen Yizhou.
The proposal suggests that the introduction of a stablecoin tied to the Hong Kong dollar could bolster Hong Kong’s standing in the blockchain industry and expedite the development of a digital Hong Kong dollar. This move could enhance transaction efficiency, lower transaction costs, upgrade existing payment systems, and further boost Hong Kong’s fintech prowess.
Furthermore, the Hong Kong Dollar stablecoin could improve the efficiency and inclusiveness of the city’s financial system. Its stability, exchange freedom, high security, openness, and cross-border liquidity could foster a broader spectrum of financial innovations.
Government’s Current Plan Is Overly Conservative
The proposal points out that the current plan of the SAR government, which only encourages private institutions to issue Hong Kong Dollar stablecoins, is overly conservative and doesn’t match its ambitious digital assets and economy agenda. It argues that private institution-issued stablecoins may not gain significant market share and could become marginalized, as exemplified by the Singapore Dollar stablecoin (XSGD) issued by Xfers, which has a market capitalization of just 6.6 million USD, compared to USDT and USDC’s 83 billion and 28 billion USD, respectively.
As such, the proposal strongly recommends that the SAR government issue a Hong Kong Dollar stablecoin, dubbed HKDG (G for Government), backed by the city’s foreign exchange reserves. This government-backed stablecoin would enjoy dual protections: government regulation and the transparency and immutability offered by blockchain contracts.
As of March 2023, Hong Kong’s foreign exchange reserves stood at 430 billion USD, far exceeding the combined market capitalization of USDT and USDC at 120 billion USD. A SAR government-backed HKDG could offer greater credibility and lower risk
Moreover, the proposal contends that the introduction of HKDG would enable Hong Kong to make significant strides towards de-dollarization and pose a challenge to the prevailing dominance of the U.S. Dollar within the crypto ecosystem.
Recently, Hong Kong has shown its intent to reclaim its status as a global crypto hub by establishing a web3 task force to build a robust ecosystem in the region.
Ripple News: XRP Flips USDC in Market Volume on Release of Hinman Documents
The relief in the Ripple and XRP community was evident after the court unsealed the Hinman documents for public scrutiny. The value of XRP jumped more than 6 percent to trade around $0.554 during the early New York trading session. Similarly, the XRP futures open interest jumped on major centralized exchanges including Binance, ByBit, and Bitget in the past 24 hours. According to a market update from Coinglass, the total XRP futures open interest jumped more than 15 percent to about $640 million on all exchanges.
Is The XRP Price Breakout a Bull Trap?
With the XRP bulls rejuvenated to rally above 58 cents, experts wondered whether the breakout will be closely followed by a price correction. Furthermore, the final judgment ruling on the SEC vs Ripple case is yet to get concluded despite the Hinman documents out for public scrutiny. According to a popular crypto trader on Twitter Ali (@Ali_Charts), the recent XRP breakout could be luring long traders before they get rekt with a full reversal.
#Ripple | This isn't the first time $XRP price moves past $0.55, luring breakout traders into a long position to then get them #rekt with a full reversal.
For this reason, you must wait for confirmation before going ape on #XRP. pic.twitter.com/OS4nV34sIV
— Ali (@ali_charts) June 13, 2023
Nonetheless, XRP macro technical indicators show the bulls have the upper ground with a possibility of rallying towards 80 cents. Moreover, this is the first time the weekly logarithmic downtrend has been broken. Additionally, the weekly 50 and 200 Moving Averages (MA) have acted as a strong support level following their daily golden cross.
9 Out 10 Investors Prefer TMS Network (TMSN) Over Binance USD (BUSD) And USD Coin (USDC)
The craze around stablecoins was already declining, but the de-pegging of USD Coin (USDC) has catalyzed the downfall. Even Binance USD (BUSD), which has the backing from the biggest crypto exchange in the world, has also plummeted on the social graph. Meanwhile, TMS Network (TMSN), a new crypto project, has stolen all the limelight with its presale success. TMS Network (TMSN) has raised over $3.2 million, and grown by 1200% in the first month of its launch.
Binance USD (BUSD) Enters Red Zone After Regulatory Attacks
The crypto market has suddenly become unfavorable toward stablecoins, including Binance USD (BUSD). Binance USD (BUSD) is a stablecoin of the Binance exchange. The value of Binance USD (BUSD) is pegged to the US dollar. However, recent weeks have pulled Binance USD (BUSD) down to the ground. The drop in Binance USD’s (BUSD) value began after regulators intensified their attack on the stablecoin. Binance USD (BUSD) suffered a major hit after a leading exchange, Coinbase, delisted it. The market capitalization of Binance USD (BUSD) has fallen from $12.5 billion to $8 billion in just a month. Currently, Binance USD (BUSD) ranks 12th by market capitalization.
USD Coin’s (USDC) De-pegging Event Scares Investors
De-pegging of the USD Coin (USDC) became a momentous event in the crypto world. USD Coin (USDC) is a stablecoin that has been pegged to the value of a US dollar. USD Coin (USDC) was designed to make transactions faster, and reduce the volatility in price. However, the recent collapses of Silver Valley Bank, and Silvergate Capital dragged USD Coin (USDC) to a critical situation where it had to de-peg itself from the US dollar. As per market data, USD Coin (USDC) had deposits worth about $3.3 billion in the Silver Valley Bank. USD Coin (USDC) has witnessed a steep fall in its market capitalization in the past 30 days, dipping from $42 billion to $34 billion. However, USD Coin (USDC) is still the 5th largest cryptocurrency by market capitalization.
TMS Network (TMSN) Brings Revolutionary Innovations to The Market
TMS Network (TMSN) is a blockchain-based platform that combines cryptocurrencies, and traditional derivatives. It is a decentralized trading platform that solves major issues like centralization, low transparency, slow transaction speed, and high fees. TMS Network (TMSN) allows users to trade without resorting to fiat payment. It enables the trading of stocks, Forex, futures, CFDs, and other derivatives by using cryptocurrency as payment. Also, traders will not be asked to open new accounts on TMS Network (TMSN). All they have to do is connect their crypto wallet, and make transactions.
TMS Network (TMSN) is equipped with institutional-level liquidity to allow traders to execute transactions instantly. TMS Network (TMSN) also has an on-chain analysis mechanism to provide advanced price analysis. Moreover, TMS Network (TMSN) has deployed smart contracts to keep middlemen away. It protects TMS Network (TMSN) from any wash trading, price manipulation, and tampering.
TMS Network (TMSN) boasts better scalability than other platforms. Hence, it can allow an increased number of trade activities at lower costs. The platform has also launched TMS Trader Education, and TMS Social Trading Club to help inexperienced traders make informed and profitable decisions. To grant users full control of their order book, TMS Network (TMSN) will offer non-custodial portfolio management, and auto-rebalancing of holdings.
$TMSN is the native cryptocurrency of the platform’s ecosystem, and stage 2 of its presale has begun. A TMSN token can currently be purchased at $0.41, which is 1200% above its launch price of $0.003. Experts have opined that purchasing presale TMSN tokens now can give investors a 100x return on their investment.
To find out more please check the links below:
Presale: https://presale.tmsnetwork.io
Website: https://tmsnetwork.io
Telegram: https://t.me/TMSNetworkIO
Twitter: https://twitter.com/tmsnetwork_io
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Circle Begins USDC Redemptions as It Burns 314 million USDC: On-Chain Data
Following the unexpected collapse of Silicon Valley Bank on Friday, there were inquiries regarding the vulnerability of Circle, one of the leading companies in the crypto industry and the issuer of the second-largest stablecoin, USDC. After the firm revealed its $3.3 billion USDC exposure to the collapsed bank, the stablecoin quickly depegged, creating panic this weekend.
However, Circle is now successfully pushing USDC to its dollar peg as it recovers 100% of its reserved fund, and Fed’s $25 billion bailout is bringing back investors’ confidence. According to a report, Circle has begun its redemption by sending 314 million USDC to a null address to stabilize the market.
Circle Prioritizes 1:1 Redeemability Of All USDC In Circulation
On March 13th, the Web 3.0 analytics platform Watchers (0xscope) reported that Circle, the issuer of USDC, had transferred a total of 314.167 million USDC to the Ethereum null address with header 0x00. Typically, this null address is employed for removing tokens from circulation through one-way transactions.
The day before, Circle had declared that all depositors with Silicon Valley Bank (SVB) would be “fully available” following a joint statement by U.S. Treasury Secretary Janet Yellen and other regulators. This move would represent $3.3 billion or 8% of the total USDC reserve and would take effect as soon as U.S. banks open on Monday. Jeremy Allaire, co-founder and CEO of Circle said:
“Trust, safety and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle, even in the face of bank contagion affecting crypto markets. We are heartened to see the U.S. government and financial regulators take crucial steps to mitigate risks extending from the banking system.”
Circle’s USDC Redemptions May Relieve Investors
Circle has started the process of redeeming USDC, meaning that depositors can now get their money back. This move came as a relief to many investors who were worried about the stability of USDC after the collapse of SVB.
The burning of USDC, however, has led to some confusion and speculation about what Circle is doing. Some believe that it is a move to show that Circle is committed to the stability of the USDC, while others speculate that it is a way for the company to remove tokens from circulation and increase the value of the remaining USDC in the market.
Despite the speculation, Circle has not issued any official statement regarding the burning of USDC. However, the move has sparked a debate about the use of stablecoins, their role in the crypto market, and the need for transparency from issuers like Circle.
USD Coin was created to have a 1:1 redeemable value with fiat U.S. dollars. Its tokenomics are managed through the use of fiat collaterals, which are adjusted proportionally to the number of new tokens being minted or burned.
However, on March 10th, the token experienced a depegging from its intended value. This was caused by a bank run on Circle’s custodian bank, SVB, due to a series of failed leveraged long positions on the U.S. Treasury. As a result, federal regulators, including the Federal Deposit Insurance Corporation, were forced to intervene.
Will Circle be Able to Restore Stability to USDC After Signature Bank Failure?
Circle, a leading player in the crypto industry, has been impacted by the recent failures of Silicon Valley Bank and Signature Bank. The collapse of Signature Bank, a critical financial institution for the industry, has left a major hole in the industry’s backend infrastructure. As a result, Circle has found a new banking partner, Cross River Bank, to provide automated minting and redemption for USDC, a stablecoin pegged to the US dollar
Impact of Signature Bank Failure
Signature Bank was a key financial institution to the crypto industry, and its sudden failure has left a major hole in the industry’s backend infrastructure. Signet, a blockchain-based real-time payments system that’s supposed to work 24/7, was used by Circle, Coinbase, and many crypto trading firms. But with the death of Signature, Signet, too, is not functional.
Circle’s Response
Circle CEO, Jeremy Allaire, confirmed that due to the failure of Signature Bank, the company had to find a new transaction banking partner for USDC operations. Allaire announced that Circle has established a new partnership with Cross River Bank, which will provide automated minting and redemption for USDC stablecoin. The partnership has allowed Circle to resume USDC operations starting from Monday, ensuring seamless settlement and boosting confidence in the stability of the stablecoin.
USDC’s Fate
USDC lost its peg to the US dollar on Friday, following uncertainty about how much of its funds were held in Silicon Valley Bank (SVB). Circle later confirmed that it held $3.3 billion, or 8% of the funds backing USDC, at SVB. However, Circle holds no USDC reserves with Signature Bank, which was closed by regulators on the same day.
The US Treasury and regulators have promised to ensure that all depositors with SVB and Signature Bank will be made whole, and the $3.3 billion USDC reserve deposit held at SVB will be fully available when US banks open on Monday. In addition, Circle will introduce automated USDC minting and redemption for customers through a new banking partner, Cross River Bank, which will go live this week. Despite the recent turbulence, USDC remains redeemable 1:1 with the US dollar.
Coinbase’s Response
Coinbase, another key company for USDC, had joined Signet to allow for real-time payments and settlements. However, it is unclear how the failure of Signature Bank will impact Coinbase’s operations. Coinbase paused redemptions between U.S. dollars and USDC on Friday and said they would reopen on Monday when normal banking hours resumed.
The recent failures of Silicon Valley Bank and Signature Bank have sent shockwaves through the crypto industry. The fate of USDC remains uncertain, but Circle is working to right the stablecoin and restore its peg to the U.S. dollar.
Costly Mistake: Here’s How a USDC Investor Lost 2 Million in a Race Against Time
The collapse of Silicon Valley Bank (SVB) on March 10 has caused ripples in the crypto industry, leaving many investors anxious about the exposure of major players like Circle, the issuer of the popular stablecoin USDC. With $3.3 billion, or around 8%, of its reserves held at SVB, Circle is now facing heavy redemptions as investors move to cash out.
The fear of USDC insolvency has caused users to flee to safety in other stablecoins. However, panic sales have resulted in mistakes, with one unlucky user paying $2,080,468.85 to receive only $0.05 of USDT. This costly mistake was revealed in a Twitter thread by BowTiedPickle.ETH
The sequence of events
This investor decided to exchange their USDC for other stablecoins like Tether to avoid the crash. However, little did they know that this decision would cost them a fortune. They paid over $2 million to receive only $0.05 of USDT!
How could this happen, you ask? Well, the investor had stored their assets in a liquidity pool, a popular method to earn passive income in cryptocurrencies. They could have easily sold their LP tokens for USDT at a 6% slippage, but they chose a questionable method instead.
They used the KyberSwap aggregation router to dump a large clip of 3CRV (DAI/USDC/USDT) LP token into USDT, a questionable decision that would cost them dearly.
The UniswapV2 pool, pairing 3CRV/USDC, had sat idle for the last 251 days. The pool contained about $2 in liquidity and was in no way equipped to handle the $2 million that was about to be slammed into it. The investor’s mistake was costly, as x * y = k quickly did its grim work.
Exactly 54,182 units of USDC, worth about 5 cents, left the contract for the second leg of the swap, where they were happily swapped into USDT and went on to the swapper. The pool, now hideously imbalanced, cried out for aid, and an MEV bot answered the call.
The bot paid $45 in gas and $39k in MEV bribes, netting $2.045M in profit. This was not a particularly complex bot, just one with the ability to unwrap 3CRV, flash bots, and back run. It was a simple case of equal opportunity but unequal results.
It’s a cautionary tale of how human error can result in a permanent loss of funds. The investor’s mistake cost them dearly, but it also highlights the importance of double-checking information and methods of a transfer before cashing out cryptocurrencies.
As the cryptocurrency market continues to evolve, investors must stay vigilant and keep their wits about them. One wrong move could mean the difference between making a fortune and losing everything.
USDC Re-pegs After Fed’s $25B Bailout, Bitcoin Price Bounces To $22.2k
The fear, uncertainty, and doubts surrounding the second largest stablecoin USDC, issued by Circle, have significantly reduced in the past 24 hours following a bailout by the United States Federal Reserve. As a result, Circle’s USDC has re-pegged to the ratio of 1:1 with the United States dollar, following a dip towards $0.87 during the weekend.
Notably, Circle’s USDC de-pegged after the collapse of several banking institutions in the United States, including Silicon Valley Bank, Signature Bank, and Silvergate Capital, where the stablecoins’ issuer had secured part of its reserves.
According to on-chain analytics by Lookonchain, the total supply of USDC has increased by approximately $493.2 million in the past 24 hours following two whale mints on the Ethereum network.
Fed Rescues Crypto Market
The cryptocurrency market faced possible capitulation as top investors in the United States were exposed to the neo-banking crisis. Bitcoin price dropped as much as $19k during the weekend, with the altcoin market bleeding further. However, Fed’s actions have restored faith in the cryptocurrency market, which has gained approximately 8 percent to a total capitalization of about $1.06 trillion. According to our latest crypto price oracles, Bitcoin is exchanging around $22,283 during the early Asian market.
“After receiving a recommendation from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, Treasury Secretary Yellen, after consultation with the President, approved actions to enable the FDIC to complete its resolutions of Silicon Valley Bank and Signature Bank in a manner that fully protects all depositors, both insured and uninsured,” the United States Federal Reserve announced on Sunday.
However, the Fed has been called out for its selective bailout despite the monetary measures to reduce inflation through interest rate hikes.
Is USDC Going To “Zero” ? Major Shareholders Selling Off USDC Could Mean Total Value Drop to Zero, Says CryptoQuant Founder
The stablecoin market is in turmoil following the depegging of Circle Internet Financial’s USDC stablecoin from its intended $1 price. The event has been called a “harrowing development” for a product designed as a safe haven for investors.
Value Dropping to Zero Means Major Shareholders Are Selling
According to CryptoQuant founder Ki Young-ju, value dropping to zero means major shareholders are selling. While there is currently no on-chain proof of a USDC bank run, the situation has caused significant concern among investors.
No USDC Bank Run Found Yet, but Circle Burns $2.34B
Although no on-chain proof of a USDC bank run has been found, Circle has burned $2.34 billion in USDC in the last 24 hours. While this is a significant amount of money, it is not unusual when looking at the historical data.
According to what I’ve observed, this USDC situation is a completely different case from the UST collapse in May 2022. During the UST collapse, on-chain activities prior to the collapse indicated that LFG sent BTC to exchanges and issued infinite LUNA to restore the UST peg.
SVB Run Causes Stablecoin Price Swings and Soaring Gas Fees
Stablecoin prices have wildly swung and gas fees have soared as investors scramble to move money around in the aftermath of regulators shutting down SVB amid a run on the bank. The bank had ties to crypto, making it the second crypto-linked bank to collapse this week.
Circle Internet Financial confirmed that about $3.3 billion of the reserves backing the world’s second-largest stablecoin were tied up at SVB. Stablecoins derive their value from these reserves, and USDC’s market capitalization has now slumped below $40 billion.
USDT Spikes as Investors Shift Money Away from USDC
USDT, meanwhile, has spiked to $1.06 on Kraken versus the U.S. dollar, a level it almost never hits, as investors appear to shift money away from USDC. Bitcoin rose in response to the events.
As the stablecoin market remains in flux, investors are keeping a close eye on developments to see how they will affect the broader cryptocurrency ecosystem.
DeFi Platform Maker DAO Takes Swift Action to Address $3.1B USDC Risk with Emergency Proposal
The crypto market has again met with another stablecoin collapse after UST as investors are rushing to withdraw their funds. Circle, the issuer of USD Coin (USDC), today announced that it faced challenges in withdrawing $3.3 billion from its $40 billion deposits at Silicon Valley Bank (SVB). As a result, it created panic among investors and brought subsequent sell-off, depegging the USDC from $1. The collapse of USDC has forced several firms to take quick action as DeFi platform Maker DAO recently filed an emergency proposal to prevent its DAI stablecoin from dropping further after being negatively impacted by USDC’s depeg.
Maker DAO’s DAI Stablecoin Becomes the Latest Victim After USDC
Maker DAO, the issuer of the DAI stablecoin pegged to the US dollar, has made an urgent executive proposal to address risks to its protocol. As per a forum post on March 11, the company expressed concern about its multiple collaterals being exposed to the “tail risk” of USDC due to the sudden de-pegging of the stablecoin that began today. Maker DAO currently holds over 3.1 billion USDC in collateral supporting its DAI stablecoin.
The proposed Maker DAO emergency plan involves several actions to mitigate risks to its protocol:
- It suggests reducing the debt ceiling of UNIV2USDCETH-A, UNIV2DAIUSDC-A, GUNIV3DAIUSDC1-A, and GUNIV3DAIUSDC2-A liquidity provider collaterals to zero DAI.
- The plan recommends lowering the daily minting limits of its USDC peg stability module from 950 million DAI to 250 million DAI and introducing a 1% fee to prevent the excessive dumping of USDC.
- The daily minting limit of the GUSD stablecoin module may also be reduced from 50 million DAI to 10 million DAI if the proposal is accepted.
Maker Aims to Eliminate Exposure to Curve and Aave
Maker DAO is considering entirely eliminating its exposure to decentralized finance protocols Curve and Aave. According to the company, Curve’s fixed $1 price for USDC presents a risk of insufficient debt accrual and potential bank runs, leading to market insolvency if the USDC’s market price drops significantly below the current collateral factor. Though Aave does not pose such risks, Maker DAO states that its overall risk-reward for depositing funds into the D3M is not advisable under current conditions.
The proposed emergency plan by Maker DAO also includes increasing the protocol’s debt ceiling for the Paxos-issued stablecoin, USDP. The ceiling would be raised from 450 million DAI to 1 billion DAI. The firm said,
“Paxos has relatively stronger reserve assets versus other available centralized stablecoins, consisting primarily of U.S. treasury bills, reverse repurchase agreements collateralized by U.S. treasury bonds. They face relatively lower potential for impairment versus other available stablecoins.”
The proposal has been put forth to the Maker DAO community for voting, and if accepted, it will be implemented immediately. The swift action taken by Maker DAO to address the USDC risk demonstrates its commitment to maintaining the stability of its protocol and ensuring the safety of its users’ funds.
Binance and Coinbase Halt USDC Transfer – Is Circle’s USDC Next in Line for a UST-Style Collapse?
Coinbase and Binance, two of the world’s largest cryptocurrency exchanges, have taken action in response to Circle’s stablecoin, USD Coin (USDC), suffering a de-peg following the collapse of Silicon Valley Bank (SVB).
Coinbase Halts USDC to USD Conversion
Coinbase has temporarily halted its USDC to USD conversion and requested that users wait until Monday when banks will reopen. The exchange has cited heightened market activity and the resulting withdrawals through banks as the reason for the suspension of conversions.
Binance Adds Stablecoin Trading Pairs
In contrast, Binance has taken a different approach by adding several new stablecoin trading pairs, running fee promotions and offers for users. These pairs include BNB/TUSD, BTC/TUSD, ETH/TUSD, TUSD/USDT, USDC/USDT, and USDP/USDT spot trading pairs. These trading pairs will be available for trading on March 11, 2023, at 14:00 (UTC).
According to Lookonchain, several crypto institutions have made substantial deposits of USDC into Circle or bought back USD in the past 24 hours. Coinbase, for instance, has deposited $1.97 billion into Circle, while an unknown organization with addresses starting with “0x3356” has transferred significant amounts of USDC to various platforms.
This deposit of USDC into Circle and the buyback of USD by some crypto institutions may be an attempt to stabilize the value of their crypto holdings amidst market fluctuations.
USDC Depeg Raises Concerns
USDC has dropped from its $1 peg and is currently exchanging hands at $0.89 at press time. This depeg has caused rising fears, uncertainty and doubt (FUD) among crypto market participants and has led to concerns that USDC may suffer the same fate as Terra’s algorithmic stablecoin UST.
Circle’s stablecoin has reached a 24-hour low of $0.88, prompting Coinbase and Binance to take proactive measures to mitigate the potential risks.
Stablecoins No More Stable: After USDC Depeg, Is Tether’s USDT in Trouble?
The collapse of Silicon Valley Bank (SVB) has caused worry in the crypto industry, especially for investors who use stablecoins like USDC and USDT. Let’s see how this affects these stablecoins.
USDC and SVB
Circle, the company behind USDC, had $3.3 billion or 8% of its reserves at Silicon Valley Bank (SVB) before its collapse. Now, Circle is facing a high number of people withdrawing their funds, causing the value of USDC to decrease. As a result, some exchanges like Coinbase and Binance have suspended certain transactions involving USDC.
However, Circle still has access to other banking partners and most of its USDC reserves are invested in short-term US treasuries and US banks. Despite these challenges, Circle is actively working to maintain the stability of USDC.
USDT and the Financial Sector
Tether’s USDT stablecoin also faces concerns about exposure to the financial sector. With the collapse of banks like Silvergate Capital, investors are concerned about the stability of USDT and other stablecoins that are usually backed by fiat currencies held in these banks.
USDT was originally created as a way to allow cryptocurrency traders to use a stable asset for trading and arbitrage purposes, without the need to convert back and forth between cryptocurrencies and fiat currencies like the US dollar.
USDT is audited by BDO, one of the biggest audit companies, and its financial statements show that most of its reserves are in cash and cash equivalents, including US Treasury bills, money market funds, and cash in banks. The latter represents about 9.66% or about $6.8 billion of Tether’s reserves, which can cover significant outflows.
Stablecoin Safety Measures
Both Circle and Tether have taken measures to ensure the safety of their stablecoins. Circle’s cash reserves are stored at the Bank of New York Mellon, the biggest custody bank in the world, while Tether’s reserves are held in a variety of cash equivalents.
Stablecoin investors and companies must stay vigilant and ensure they have robust risk management strategies in place to mitigate potential shocks or disruptions. The stability of the crypto industry is closely tied to the health of the traditional banking system, and as crypto continues to grow and mature, it is essential to prepare for potential risks and take steps to minimize them.
Is Circle’s USDC Stablecoin at Risk after the collapse of SVB?
The collapse of Silicon Valley Bank (SVB) on March 10 has sent shockwaves through the crypto industry, leaving many investors concerned about the exposure of major players like Circle, the issuer of the popular stablecoin USDC. With $3.3 billion, or around 8%, of its reserves held at SVB, Circle is now facing heavy redemptions as investors move to cash out.
The USDC stablecoin, which is designed to maintain a peg to the US dollar, has seen its value drift lower across different crypto exchanges amid the withdrawals. Some onlookers have noted “uncharacteristically high volatility” in the price of USDC, as investors rush to take their funds out of the Circle stablecoin.
To add to the uncertainty, crypto exchange Coinbase has suspended USDC:USD conversions for the weekend, citing the need to wait for banks to reopen. Other top exchanges like Binance have initiated similar measures, suspending auto-conversions from USDC to other stablecoins due to “market conditions” and the increasing burden of supporting such conversions.
While many investors are understandably nervous about the state of USDC and the broader crypto ecosystem, Circle has sought to instill confidence by emphasizing that it still has access to multiple banking partners and is actively working to protect the stability of its stablecoin. In a tweet, Dante Disparte, Circle’s chief strategy officer, stated that the firm was “protecting USDC from a black swan failure in the banking system.”
Some industry insiders have expressed optimism that Circle will be able to weather the storm, pointing to the company’s diverse sources of funding and potential options for covering any potential shortfalls. Adam Cochran, an investor, and entrepreneur, noted that Circle could potentially cover the $3.3 billion gap by using interest from its reserves, issuing new shares, or taking on venture debt.
Dante Disparte, the CSO of Circle, said that Circle is protecting USDC from a disastrous event in the US banking system. He warned that if SVB Financial, an important bank in the US, fails without federal support, it could affect many businesses and entrepreneurs.
Circle has acted quickly to limit its exposure to banks, and the majority of the USDC reserves are held in the Circle Reserve Fund, which mainly invests in short-term US treasuries and other US banks. Disparte emphasized the need for a well-functioning US banking system to support economic growth, and he called on policymakers, regulators, investors, businesses, and people to support this goal.
While the fallout from the SVB collapse is still unfolding, it is clear that the stability of the crypto industry is closely tied to the health of the traditional banking system. As crypto continues to grow and mature, it will be important for investors and companies to stay vigilant and ensure that they have robust risk management strategies in place to mitigate any potential shocks or disruptions.
This Is How Circle’s USDC Will Outcast Tether’s USDT
In the last 24 hrs the star cryptocurrency, Bitcoin has plunged from its crucial support level of $23K. Also it happens to be the second day that Bitcoin is flashing negative marking. However, the global crypto market cap is still holding on to its $1 trillion mark, but a few figures away from dropping below the mark.
At the time of writing, Bitcoin is selling at $22,725 after a fall of 1.61% over the last 24hrs.
Meanwhile, a renowned crypto analyst and host at Coin Bureau channel, Guy Turner is hoping for one of the US dollar-pegged stablecoin to lead the crypto market. The analyst informs his 2.2 million subscribers that Circle’s USD Coin (USDC) which is the second largest stablecoin will soon overshadow Tether’s USDT.
USDC To Overshine USDT
As per Guy Turner, the USDC’s supply has spiked massively in the last few years. This is one of the reasons for him to consider USDC to become predominant stablecoin in the next two years.
However, the analyst portrays concern in connection with Circle’s USDC as it is backed by Goldman and partnered with BlackRock. Turner then talks about USDC’s willingness to censor transactions if asked. On the contrary, he believes that the stablecoin portrays a healthy competition that boosts for better products. Further he views this as an opportunity where people can diversify their stablecoin holdings.
Hence, the strategist asserts that this is the reason why he believes Tether will emerge as one of the fully audited stablecoin and will address the funds completely. However, until this happens, Guy Turner is confident that Circle’s USDC will continue to portray its massive growth.
The Battle For Stablecoin Dominance: USDC Dethrones USDT!
The two largest stablecoins by market capitalization, Tether’s USDT and Circle’s USDC, continue to compete for dominance in the market. As of recently, USDC has dethroned USDT in terms of transfer volume, according to an on-chain statistical study conducted by Glassnode.
Specifically, USDC transfer volume has averaged above 15 billion for the past three months, whereas USDT transfer volume has averaged below 5 billion during the same period. Notably, Tether’s USDT has lost one of its major customers, FTX and Alameda, which has contributed to a decrease in its transfer volume.
Despite this, Tether’s USDT has maintained its position as the top stablecoin in terms of market capitalization and daily trading volume.
According to market data provided by Binance-backed Coinmarketcap, USDT has a market capitalization of approximately $66,280,561,302 and a 24-hour trading volume of about $23,449,553,551. Additionally, according to on-chain data provided by etherscan.io, USDT has a total of 3,968,318 holders who have made 171,639,755 transfers.
On the other hand, Circle’s USDC has a maximum total supply of 40,745,274,208.26955 and a 24-hour trading volume of around $2,714,241,204. Additionally, according to on-chain data, USDC has a total of 1,578,797 holders who have made 57,695,025 transfers.
Among the largest holders of USDC include Maker, Binance, crypto.com, and the Polygon network, among others.
The divergence of Tether USDT and Circle’s USDC in transfer volume significantly increased after the Bitcoin price and crypto market began the 2022 bear market. This indicates that problems within FTX may have begun way earlier than the day SBF rang the alarms.
What Are The Institutional Investors Choosing?
The stablecoin market has gained significant popularity in recent years due to the high volatility of cryptocurrencies such as Bitcoin and Ethereum. Retail traders have been using stablecoins as a hedge against volatility, allowing them to take profits during bullish markets or protect their assets during bearish markets. However, mainstream adoption of cryptocurrency requires a highly transparent and audited stablecoin market to avoid instances such as those with Terra and Luna, and UST.
Circle’s USDC has gained favor among institutional investors, including BlackRock and BNY Mellon, due to its high level of transparency. For example, every month, Grant Thornton LLP, one of America’s largest audit, tax, and advisory firms, provides third-party assurance of the size of the USDC reserve.
In contrast, Tether’s USDT has struggled with providing reserve data over the years. Furthermore, Tether was fined over $40 million by the U.S. Commodity Futures Trading Commission (CFTC) for making misleading statements regarding its reserve data. This highlights the importance of transparency and trust in stablecoin markets, and the advantage of USDC as compared to its competitors.
Controversy Brewing? Coinbase Urges Users To Switch To USDC from USDT!
Recently, there has been a significant amount of worry over the credibility of Tether (USDT). In a most recent turn of events, controversy seems to be brewing in the industry as a result of Coinbase publishing a blog post that criticizes USDT and urges users and investors to migrate to its competitor, USD Coin (USDC).
During times of market volatility, users are provided with security and trust by fiat-backed stablecoins, which are cryptocurrencies that are tied to reserve assets such as the United States dollar. However, the events that have occurred over the last few weeks have put certain stablecoins to the test, and according to Coinbase, there has been a flight to safety.
What is Coinbase’s Newest blog about?
As part of a new marketing initiative that places greater emphasis on the caliber of the reserves that support the Circle-owned token, the largest crypto exchange in the U.S. is doing away with the need that customers to pay a conversion fee in order to switch to the trustworthy and more secure stablecoin, as stated in its latest blog post.
https://twitter.com/coinbase/status/1600997059770736641
“We believe that USD Coin (USDC) is a trusted and reputable stablecoin, so we’re making it more frictionless to switch: starting today we’re waiving fees for global retail customers to convert USDT to USDC.”– Coinbase
The United States exchange has said that it was a co-founder of USDC in 2018, with the intention of bringing about a more accessible and decentralized monetary system throughout the globe.
The USDC is a one-of-a-kind currency because it is fully backed by cash and short-term U.S. treasuries that are held in financial institutions that are regulated by the country, says Coinbase. It may always be exchanged for one dollar in U.S. currency at the rate of 1:1.
Customers are demanding more openness, which USDC satisfies via the monthly attestations provided by Grant Thornton LLP, which is one of the leading audit, tax, and consulting companies in the United States. Additionally, Coinbase provides its qualifying clients with the opportunity to earn up to 1.5% annual percentage yield (APY) on their USDC holdings.
It would seem that exchanges are taking sides in the battle for the position of most dominant stablecoin. Coinbase is following in the footsteps of Binance, which in September released a function that automatically converts USDC to BUSD in order to support its own stablecoin. Coinbase is doing the same thing. Since that time, the percentage of the stablecoin market that is held in BUSD has increased substantially.
How This Could Affect Tether?
Coinbase’s advocacy for a switch from USDT to USDC could affect Tether, who according to its most recent quarterly report, has 82% of its reserves stored in cash, cash equivalents, and other short-term deposits as of September 30.
On-chain indicates that Tether’s USDT is the third most actively traded digital currency on Coinbase, making up around 5% of the overall volume. The Stablecoins issuer has not yet published a thorough audit of its reserves but maintains that the reserves are properly supported despite this.
When Tether reduced its $24 billion in commercial paper holdings, the company claimed to have lost no money. The majority of the stablecoin issuer’s reserves are currently held in U.S. Treasury bills.
A court in New York, United States, demanded financial documents related to the backing of USDT from Tether in late September. The lawsuit seeking the New York Attorney General to disclose the evidence it obtained during its investigation of Tether’s reserves is distinct.
Although USDC has grown in popularity, USDT is still the biggest stablecoin by market cap and has more than $23 billion in market cap than USDC.
Conclusion
USD Coin (USDC) and Tether (USDT), both pegged to the US dollar, have become the most popular stablecoins, dominating the market and being supported by the vast majority of cryptocurrency infrastructure.
Those who are concerned with privacy should use USDC, while those seeking liquidity and who want to invest in a cryptocurrency with bigger trading volumes should use USDT.
Given its prominence and influence in the crypto industry, Coinbase has a good chance of winning its fight for a switch. Coinbase is expected to have the same kind of success as Binance had when it promoted its stablecoin, BUSD.
Oryen Network Pushes +200% Due To Huge Buys With USDT And USDC
Stablecons like Tether and USD Coin are integral to the crypto world. By being tied to regular fiat currencies like the dollar, they give holders true stability and a price they can always understand. So when major holders of extremely stable currencies like USDC start moving their funds into other projects, people take notice. That’s what’s been happening recently with Oryen Network: and it’s already up 200% as a result.
But if you missed your chance to enjoy these gains: there’s still time left to enjoy more. ORY hasn’t even officially launched yet, and many experts think it’s set to be one of the break-out stars of the crypto world over the next few months when it does. By investing now, you could enjoy even bigger gains when it hits mainstream marketplaces and continues to capture the public’s imagination.
Oryen Network (ORY) thriving thanks to major influx of investments
Oryen’s performance during pre-sale is even more impressive when looking at the wider crypto market’s recent issues. If you’ve got other investments in the industry, you’ll probably have seen how much your portfolio has been struggling recently. Most people are experiencing the same issues: but those invested in ORY are bucking the bear market trend. They’ve already seen gains at a time when almost every other crypto is plummeting. And they’re expecting even more gains now major holders of USDT and USDC are all-in on the project. With the biggest passive income yield ever at 90% and the easiest staking model ever seen in crypto, these price movements will be supported by a truly sustainable system that pays out generously over time. So if you want price gains and passive yields along the way, join stablecoin investors by putting your faith into ORY.
USD Coin (USDC) leads the way for digital fiat options
In a crypto world where many other investments are open to vast amounts of volatility and price dumps on a day-to-day basis, stablecoins have become a crucial part of the ecosystem. They provide a price that’s tied to a true value like the dollar and can be used easily for purchases and transactions in a currency everyone can always understand the value of. USDC continues to lead the way as one of the most prominent stablecoin options and should always be part of a diversified portfolio alongside more speculative investments as a hedge against volatility.
Tether (USDT) remains stable despite market turmoil
Tether had taken a bit of flak a few months back. Many questioned its ability to remain on a 1:1 dollar peg, especially in volatile times. But despite recent turmoil, USDT has surprised some onlookers by continuing to offer true stability for investors. It’s one of the best stablecoin options out there and is an integral part of the crypto ecosystem. But alongside their USDT holdings, some savvy investors are moving funds into projects like ORY. Now could be the time to follow their lead and gear your portfolio up for long-term success.
Conclusion
While any good portfolio should have stablecoin stability with the likes of USDT and USDC, it should also have investments that could rocket into the stratosphere. And the best option if you’re looking for those kind of gains is ORY, which is primed for the big time in the crypto world and could soon surpass almost every other altcoin. Now’s the perfect time to invest before it finishes pre-sale.
Find Out More Here:
Join Presale: https://presale.oryennetwork.io/register
Website: https://oryennetwork.io/
Telegram: https://t.me/OryenNetwork
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Stablecoins Like USDT and USDC Moving out of Gemini & Other Major Exchanges! What’s Next?
The impact of the FTX collapse has been spreading significantly over the other platforms as more number of them are restricting users’ activity, failing to carry out their business as usual. While some of the platforms who denied earlier have admitted to their platform’s exposure to the FTX crisis.
Therefore, many such platforms are soon expected to open up about their financial stands and exposure to FTX.
In a recent update, the world’s largest exchange Gemini owned by the Winklevoss brothers appear to b in deep trouble as they halt user withdrawal. Meanwhile, they deny being exposed to the Genesis crisis but halting user withdrawals says it all. Hence the larger institutions and maybe whales are pulling out of the exchange.
As per the report, the Gemini staking service may soon shut down and this has compelled the users to quit the platform. The platform witnessed the largest withdrawal movement ever as stablecoins worth more than $300 million exited from the Gemini reserve.
On the other hand, the major stablecoins are also moving out of the exchanges. As per a popular on-chain analytical platform, Santiment, a huge drop in USDT, USDC & BUSD holdings in the reserves of the exchanges has been recorded following the FTX collapse.
With the recent FTX fallout, more money is flowing out of the crypto space. It is quite evident that the large institutions or even the whales may have transferred their holdings from the exchanges and moved them to self-custody. This is believed to have a larger impact on the crypto space as stablecoins are believed to be the highest-traded entity on daily basis.
Massive USDC Transfer to Coinbase May Trigger a Significant Wave Within the CryptoMarkets Soon!
The crypto space attempted to rise high after a brief consolidation, but FOMC fear appears to have reinstalled strength within the bears. The global market capitalization has not changed significantly; it is still circling around $922 billion. The levels are anticipated to fall sharply in the near future, giving market participants the chance to stock up at reduced prices.
A couple of sizable transfers caused a lot of noise, suggesting that the whales may be getting ready for the potential price drop. As per a new update, more than 268.3 million USDC was transferred from an unknown wallet to the Coinbase Exchange.
The markets are slowly turning green as Bitcoin prices are trying hard to rise beyond $19,200 and maintain a firm upswing. However, some market participants now believe the asset may witness a short-term bounce beyond $19,500 that may further fuel a price surge beyond crucial resistance at $20,800. Moreover, some analysts believe the prices may even rise as high as $21,000 too.
However, these transfers are assumed to induce significant volatility within the crypto space that may uplift the BTC price beyond the crucial resistance. Meanwhile, the bounce is also expected to be a minor one that may trap the bears above $20,000 yet again.
Therefore, as the year 2022 began with a bearish influence, a similar end may be expected for the Bitcoin(BTC) price.
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Uniglo (GLO) Early Investors See Superb 35%+ Gains By Buying Using Tether (USDT) And Binance USDC (BUSD)
Amongst choppy market conditions and an uncertain macroeconomic environment, a new Ethereum-based token, Uniglo (GLO), is rapidly rising to prominence. This new social currency promises an improved store of value and has already risen by 35% in the last month. Part of its success comes from the wide array of digital assets accepted for the ICO (Initial Coin Offering).
Investors are using their Tether (USDT) and Binance USD (BUSD) to participate. This protocol offers a brilliant way for investors to diversify their portfolios. And position themselves to take full advantage of the incoming violent market reversal.
Uniglo (GLO)
Uniglo’s remarkable performance comes following its smart contract audit from DeFi security specialists Paladin. The audit rallied early investors, and with so much stablecoin in the market currently, it provides an excellent outlet for investors to put their assets to productive use.
Uniglo introduces a value-backed token GLO in reaction to the decline of fiat’s value and the volatility present in the crypto markets. GLO represents a diversified portfolio by holding a unique blend of physical and digital assets, despite being a single token. Interestingly the Uniglo Vault will keep high-end luxury items, the type typically out of the ordinary investors’ reach, such as real estate, fine art, and gold. All of these have proved superb stores of value. Fine art specifically is a great hedge against market downturn because it is typically unaffected by how markets behave.
Tether (USDT)
Tether was launched in 2014 and remains the largest stablecoin by market cap. With a total market cap of over $67 billion, USDT tracks the price of the US dollar, and Tether holds sufficient reserves to back every single USDT. Tether can be redeemed for dollars or minted with dollars.
It holds a blend of cash, commercial paper, and treasury bills to guarantee each USDT. For a long time, there have been negative rumours swirling around Tether and the validity of its reserves. But Tether has proven itself in the bear market with the Luna Crash, which saw a run on USDT and other stablecoins; with billions of dollars redeemed, USDT managed to maintain its peg. And thus prove its ability as a trustworthy stablecoin.
Binance USD (BUSD)
BUSD is the stablecoin of the centralised exchange Binance and soon be the only stablecoin that will be utilised on the platform, with the exchange converting investors’ stablecoin funds into BUSD. This will enhance liquidity and allow more efficient stablecoin trading across the platform.
With a market cap of over $20 billion, BUSD is the third largest stablecoin and one that is approved and regulated by the New York State and releases a monthly audit of its reserves. Widely considered one of the safest options to store digital dollars.
Find Out More Here
Join Presale: https://presale.uniglo.io/register
Website: https://uniglo.io
Telegram: https://t.me/GloFoundation
Discord: https://discord.gg/a38KRnjQvW
Twitter: https://twitter.com/GloFoundation1
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