The fourth step of Cryptocurrency: A “USDC” story — Stable coin Part 2
Today we are going to learn about “USDC,” which acts as a dollar in coins. Stable coin may be similar to USDC, but it is clearly different.
What is USDC?
USDC has two founders, one from Circle, a P2P payment service company, and the other from Coinbase, a cryptocurrency company.
(USDC = USD)
USDC, like USDT, sets the auto-sale price to 1 dollar.
(1 USDC = $1)
They’re like shelters for highly volatile cryptocurrencies.
The founders made it easier to use USDC coins for everyday payments, commerce, and P2P transactions.
The number of issues of USDC is infinite. Not only are new coins generated by demand each time you purchase one in dollars, but also the security and confidence of stable coins are delivered by proving that the U.S. dollar is safely stocked.
The characteristics of USDC
USDC is a stable coin that works with Coinbase and Circle, two of the largest cryptocurrency exchanges.
Unlike other cryptocurrency venture companies, Circle and Coinbase are coins that have achieved compliance in the country and are well-funded companies.
In short, it’s a coin run by rich companies, haha.
*Circle is a P2P (person-to-person) payment service company!
The most important thing about USDC is transparency.
It gives users confidence that they can withdraw one USDC and receive one dollar without any problems.
Mainly, it checks the cash level held by the accounting company as reserves and checks whether it matches the number of tokens in circulation.
The growth of USDC
Although USDT is older, the reason why USDC was able to expand in the market at an extremely rapid pace is its transparency in funding sources.
USDT was caught up in repeated investigations, while USDC had never been caught up in an investigation, so it quickly gained trust from users.
💥 The market share was huge at 74%:16% in 2021, but now it has decreased slightly to 45%: 30%.
How was today’s story about the second stable coin, USDC?
If you have any questions or want to know about anything related to coins, please come in and join us.
See you next time!