The CEO of Circle has released a Twitter thread dispelling allegations that USDC is on the verge of collapse.
Jeremy Allaire, founder and CEO of Circle, has released a Twitter thread dispelling allegations that the USDC stablecoin is on the verge of collapse. Mr Allaire began the Twitter conversation by posting Circle’s most current remarks about openness and trust, audits and attestations, and the liquidity of USDC.
It is understandable why some users may be suspicious
Mr Allaire went on to clarify that he understood why crypto fans were somewhat anxious about the condition of USDC, considering the recent crypto events involving the collapse of many projects due to the bear market. He elaborated.
Given the history of fraud in crypto, it is logical that some users might be wary. We have always attempted to hold ourselves to the greatest possible standards. This has allowed us to cooperate with regulators, premier assurance companies, and prominent financial institutions.
In addition, Circle’s CEO said that USDC’s reserves are at the heart of speculations that the stablecoin may collapse. He noted that the USDC’s reserves and the real USDC utilised in lending markets are distinct. He reaffirmed that the USDC’s reserves are transparent, controlled, and scrutinised by authorities.
Regarding the company’s Circle Yield product, Mr Allaire said that a blog post will be published this week. In addition, Circle Yield is regulated, over-collateralized, marketed as security to only authorised investors, and has a very cautious UW strategy.’ [Circle] has had no problems with Circle Yield.
He closed his Twitter thread by asserting that Circle’s financial health had never been stronger. He said: Circle has never been in a stronger financial position, and we will continue to expand our openness. In addition, we are pleased by the emergence of legal frameworks for stablecoin issuers, which should aid in boosting trust in issuers such as Circle.