Circle CEO Dismisses Rumors About USDC Stablecoin Collapse

Circle CEO Jeremy Allaire dismisses rumpus about the collapse of USDC stablecoin. Circle is a peer-to-peer payment technology firm.

In a Twitter thread published over the weekend, Allaire said he can understand why the crypto community “would be paranoid” about USDC, taking into account the recent collapse of several prominent crypto projects.

Allaire posted a tweet thread over the weekend where he explained that he understands that due to the recent cases where various leading crypto projects dramatically collapsed the crypto industry tends to be a little pronoid about other crypto projects too such as USDC.

Then the Circle chief goes on to clear all the rumors surrounding Circle and said that “Circle is in the strongest position it has ever been in financially,” adding that the team will continue to expand the transparency.

8/ Circle is in the strongest position it has ever been in financially, and we will continue to increase our transparency. FWIW, we are also encouraged by emerging regulatory frameworks for stablecoin issuers, which should help further increase confidence in issuers like Circle.
— Jeremy Allaire (@jerallaire) July 2, 2022

Supporting his statement, Allaire said that the latest reports of Circle on audits and attestations, trust, and transparency, along with the reports on the liquidity state of USDC.

The statement by Circle comes amid the speculation that the company is on the verge of defaulting on its USDC reserves because of its big due interest payments to banks such as Silvergate and Signature.

Lending activities involving Three Arrows Capital (3AC), BlockFi, Celsius, and Genesis also include the popular stablecoin. Interestingly, all the mentioned crypto firms have suffered the worst liquidity crisis that has left the crypto industry crippled.

Circle’s USDC scheme is on the brink of collapse. If you read their SPAC IPO filings its clear they have been losing money constantly but theres something dirtier happening underneath. They’re at major risk on defaulting on USDC reserves. A deep dive ? on USDC. ? pic.twitter.com/GgN5oeD7gO
— Geralt Davidson (@CryptoInsider23) June 29, 2022

Allaire also explained that there is a major difference between the actual USDC which is used in lending markets and USDC’s reserves, putting an end to the baseless rumors.

Allaire noted that people seem to have confusion between USDC, used in lending markets, and USDC reserves that are examined by assurance firms and regulators, regulated by where and what they can hold, and transparent by weekly flows and composition.

6/ There is also some obvious confusion between USDC reserves — which are regulated (where and what we can hold), examined (by regulators and assurance firms), and transparent (weekly flows and composition) — and USDC that itself is used in lending markets, away from Circle.
— Jeremy Allaire (@jerallaire) July 2, 2022

The founder also announced that Circle will publish a blog this week on the short- and long-term yield interest rate product developed completely on the USDC stablecoin, Circle Yield. Allaire added that the product is both over-collateralized and regulated and is available for accredited investors and the circle has no issues with these investors.

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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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Source: https://www.thecoinrepublic.com/2022/07/05/circle-ceo-dismisses-rumors-about-usdc-stablecoin-collapse/