Much to the relief of the crypto community, the creator of USD Coin (USDC), Circle, refutes claims that USDC is going through a crisis amid the ongoing crypto market crash.
Circle’s founder and CEO Jeremy Allaire posted a Twitter thread debunking all the reports via a few blog posts that clarifies Circle’s current position.
The first blog post titled “How to be Stable” states that stablecoin USDC has always been backed by the equivalent value of U.S. dollar-denominated assets.
“USDC reserves are kept in the management and custody of leading U.S. financial institutions, including BlackRock and Bank of New York Mellon,” the post reads.
The other blog posts he shared were related to transparency and trust, audits and attestations, and the state of USDC’s liquidity.
Allaire stated that given the history of “hucksters” in the crypto industry, it makes sense why a few of the users are feeling paranoid.
Circle has consistently made an effort to hold itself to the best standards possible, the CEO of Circle added.
Allaire noted that there is some confusion spread in the community regarding USDC reserves, which are transparent, reviewed by regulators and assurance firms, and the USDC which is used in lending markets outside of Circle.
According to him, Circle is in the best financial shape it has ever been in, and the team is planning to continue to expand our transparency.
Allaire concluded the Twitter thread by saying, “FWIW, we are also encouraged by emerging regulatory frameworks for stablecoin issuers, which should help further increase confidence in issuers like Circle.”
The rumors regarding USDC stablecoin were very much expected as Terra UST’s collapse did lead to a series of events bringing big loss to the community, causing the shutting down of several crypto giant firms, etc.
Also Read: Why Terra Luna is Crashing Down with its Stablecoin UST?
Last month, TRON blockchain’s stablecoin USDD lost its dollar peg similar to that of the Terra UST collapse. USDD is yet to regain its dollar peg, currently trading at a price of $ 0.99.
