USD Coin

Vitalik: Centralized USDC could decide the future of contentious ETH hard forks

Ethereum co-founder Vitalik Buterin says that centralized stablecoins such as Tether (USDT) and Circle USD (USDC) could become “a significant decider in future contentious hard forks.” Buterin was speaking at the BUIDL Asia conference in Seoul on Aug. 3, along with Illia Polosukhin, the co-founder of Near Protocol (NEAR) to discuss Ethereum’s upcoming Merge. The Ethereum co-founder argued that centralized stablecoins could be a “significant” decider of which blockchain protocol the industry would “respect” in hard forks. A hard fork occurs when there is a radical change to the protocol of a blockchain network that effectively results in two versions. Usually, one chain ends up being preferred over another. “At the moment of the merge, you will have two [separate] networks […] and then you ...

Roger Ver denies CoinFLEX CEO’s claims he owes firm $47M USDC

Roger Ver, an early Bitcoin investor and Bitcoin Cash proponent, has pushed against claims from crypto investment platform CoinFLEX regarding an alleged $47-million debt. In a Tuesday tweet, Ver — not mentioning CoinFLEX by name — said he had not “defaulted on a debt to a counter-party,” and alleged the crypto firm owed him “a substantial sum of money.” The denial followed rumors on social media that the BCH proponent was involved in the platform halting withdrawals due to “a high-networth client who has holdings in many large crypto firms” not covering their debts. CoinFLEX CEO Mark Lamb took to Twitter shortly after the statement to claim the company had a written contract with Ver “obligating him to personally guarantee any negative equity on his CoinFLEX account and top up margin regul...

Tether’s USDT market cap dips below $70B for an 8-month low

Tether (USDT), the biggest stablecoin and the third largest digital currency by market capitalization, continues losing its market value amid the current market downturn. On June 16, USDT’s market cap dropped below $70 billion for the first time since October 2021. The drop followed a cascade of repeated declines shortly after the USDT market value reached its all-time high above $80 billion in May. At the time of writing, Tether USDT’s market capitalization stands at $69.3 billion, up around $300 million from the multi-month low, according to data from CoinGecko. USDT 90-day market capitalization chart. Source: CoinGecko Tether’s biggest rival, USDC, is the second-largest U.S. dollar-pegged stablecoin backed by the peer-to-peer payments technology company Circle. The stablecoin reached $5...

Binance’s CZ says he is ‘skeptical’ about the Terra relaunch

Binance CEO Changpeng Zhao, also known as CZ, expressed skepticism around the revival plan for the Terra ecosystem and the launch of the new LUNA token. “I try not to predict what the community will do. […] Many are skeptical. I’m one of those guys,” said CZ in an exclusive interview with Cointelegraph. Following the collapse of TerraUSD (USD), the Terra ecosystem’s stablecoin, CZ criticized its team for not handling the crisis properly and pointed at the project’s flaws that led to the crash. Still, Binance is now actively participating in Terra’s revival plan by hosting the airdrop of its new LUNA token. As CZ pointed out, despite the widespread skepticism around the Terra relaunch, Binance has a responsibility to help users affected by the crash of LUNA. “We still need to ensure c...

Do you have the right to redeem your stablecoin?

Stablecoins are often discussed with regard to their “stability.” It is usually questioned whether a stablecoin is sufficiently backed with money or other assets. Undoubtedly, it is a very important aspect of stablecoin value. But, does it make sense if the legal terms of a stablecoin do not give you, the stablecoin holder, the legal right to redeem that digital record on blockchain for fiat currency? This article aims to look into the legal terms of the two largest stablecoins — Tether (USDT) by Tether and USD Coin (USDC) by Centre Consortium, established by Coinbase and Circle — to answer the question: Do they owe you anything? Related: Stablecoins will have to reflect and evolve to live up to their name Tether Article 3 of Tether’s Terms of Service explicitly states: “Tether reserves th...

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?

The past week has not been an easy one. After the collapse of the third-largest stablecoin (UST) and what used to be the second-largest blockchain after Ethereum (Terra), the depeg contagion seems to be spreading wider.  While UST has completely depegged from the U.S. dollar, trading at sub $0.1 at the time of writing, other stablecoins also experienced a short period where they also lost their dollar peg due to the market-wide panic. Tether’s USDT stablecoin saw a brief devaluation from $1 to $0.95 at the lowest point in May. 12. USDT/USD last week from May. 8–14th. Source: CoinMarketCap FRAX and FEI had a similar drop to $0.97 in May. 12; while Abracadabra Money’s MIM and Liquity’s LUSD dropped to $0.98. FRAX, MIM, FEI and LUSD price from May. 9 – 15th. Source: CoinMarketCap A...

Tether is gaining momentum against competing stablecoins, says Tether CTO

Paolo Ardoino, the chief technology officer of Tether and Bitfinex, is confident that Tether will preserve its status as the most used stablecoin, despite the rapid growth of competitors such as USD Coin (USDC).  “If you see the volumes of Tether compared to the rest of stablecoins, they are insanely higher. They are even 10 times higher on a bad day,” he pointed out. According to a report from Arcane Research, USDC, the second-largest stablecoin, has been growing at an impressive rate over the last year and could soon overtake Tether in terms of market cap. Ardoino is not worried about this possibility and pointed out that USDC’s growth has been slowing down in the last month.  “In the last 30 days, Tether regained momentum,” he said.  According to Ardoino...

Crypto portfolios: How much of a stablecoin allocation is too much?

Cryptocurrencies are well-known for being volatile assets, which means that experienced traders have plenty of opportunities in the space. Investors can expect to be taken on a wild ride if they plan on holding for a long time. Stablecoins, a class of cryptocurrencies that offers investors price stability pegged to the value of fiat currencies, offer investors a safe haven when market turbulence hits but may represent missed opportunities over time. Speaking to Cointelegraph, several experts have stated that retail investors should approach cryptocurrencies with a “pay yourself first” attitude and that an allocation of up to 5% in crypto should be relatively “safe” while allowing for “marginal return.” Stablecoins are entirely different: No “marginal return” can be expected from simply hol...

Neutrino Dollar breaks peg, falls to $0.82 amid WAVES price ‘manipulation’ accusations

Neutrino Dollar (USDN), a stablecoin issued through Waves-backed Neutrino protocol, lost its U.S. dollar-peg on April 4 amid speculations that it could become “insolvent” in the future. USDN plunges 15% despite WAVES backing USDN dropped to as low as $0.822 on Monday with its market capitalization also diving to $824.25 million, down 14% from its year-to-date high of $960.25 million. Interestingly, the stablecoin’s plunge occurred despite Neutrino’s claims of backing its $1-peg via what’s called “over collateral,” i.e., when the total value of Waves (WAVES) tokens locked inside its smart contract is higher than the total USDN minted, also called the “backing ratio.” Neutrino Dollar price performance in the last 24 hours. Source: Co...

Altcoin Roundup: DeFi token prices are down, but utility is on the rise

The decentralized finance (DeFi) sector has been sitting in the backseat since whipping up a frenzy in the summer of 2020 through the first quarter of 2021. Currently, investors are debating whether the crypto sector is in a bull or bear market, meaning, it’s a good time to check in on the state of DeFi and identify which protocols might be setting new trends. Here’s a look at the top-ranking DeFi protocols and a review of the strategies used by users of these protocols. Stablecoins are the foundation of DeFi Stablecoin-related DeFi protocols are the cornerstone of the DeFi ecosystem and Curve is till the go-to protocol when it comes to staking stalbecoins. Top 5 protocols by total value locked. Source: Defi Llama Data from Defi Llama shows four out of the top five protocols in terms of to...

FTX CEO weighs in on Bitcoin market outlook amid Ukraine crisis

The world woke up to a “sea of red” that was not necessarily limited to the financial markets, as Russia declared war on Ukraine early Thursday. The traditional financial markets along with the crypto markets have been sliding bearishly for the past week and saw a rapid decline early on Thursday. Apart from crude oil prices, which jumped to an eight-year high above $100, the majority of stocks has lost over 5%. The Russian invasion on Thursday triggered the bears leading to a $500-billion crypto market sell-off, where the majority of the cryptocurrencies lost critical support to trade at a three-month low. The crypto market capitalization saw a 10% decline during early morning Asian trading hours, falling below the $1.5-trillion mark. Bitcoin (BTC) is considered an inflation hedge, and man...

Hong Kong begins discussions to introduce stablecoin regulatory framework

Hong Kong’s central banking institution, the Hong Kong Monetary Authority (HKMA), released a questionnaire to gauge public opinion on regulations for crypto-assets and stablecoins. The state-backed regulator intends to establish a regulatory framework by 2023-24. HKMA’s “Discussion Paper on Crypto-assets and Stablecoins” highlights the explosive growth of the stablecoin market in terms of market capitalization since 2020 and the concurrent regulatory recommendations put forth by international regulators including the United States’ Financial Action Task Force (FATF), the Financial Stability Board (FSB) and The Basel Committee on Banking Supervision (BCBS). Market Capitalization of Crypto-assets. Source: HKMA According to the HKMA, the current size and trading activity of crypto-asset...

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