stablecoin A digital currency designed to manage crypto volatility. Because they are pegged to more stable assets, they retain their value compared to more volatile cryptocurrencies.
USDT When USDC A stablecoin pegged to the US dollar. There are many other types of stablecoins, including fiat currencies, commodities, algorithmic stablecoins, and cryptocurrencies. Due to their low volatility, the use of stablecoins is increasing year by year.
The differences between USDT and USDC stablecoins are:
Difference between USDT and USDC
USDT as a multi-chain stablecoin
USDT is a dollar-pegged stablecoin, launched in 2014 by Tether Limited Inc. Initially released on the Bitcoin blockchain via the Omni Layer protocol, it has grown to become the native token of several other blockchains.These blockchains include Solana, ethereum, Tron, shortly, Algorand, avalancheBitcoin Cash’s Simple Ledger Protocol (SLP), Ios, Kusama, liquid network, Binance Smart Chain, polygon, paperand Statemine.
This is how cryptocurrency users can earn TRC20 USDT (USDT issued on the TRON network), ERC20 USDT (USDT issued on the Ethereum network), OMNI USDT (USDT issued on the Omni network), and BEP 20 USDT (USDT). That’s why you can display a name or ticker like issued on the Binance Smart Chain network).
Understanding the different types of USDT is important to avoid sending a particular USDT type to the wrong network. For example, if a user sends her 4,000 Tron USDT to her ERC20 USDT address, those assets are immediately lost.
market data
The current market capitalization is $66 billionWhen 3,994,277 Another wallet holding it.Among the number of wallets, the top 50 and top 100 are 39.04% When 45.11% USDT each available. USDT is currently Audited Made in BDO Italy.
lawsuit
of 2017, the Tether team has been told by the U.S. Commodity Futures Trading Commission (Prosecutor’s Office) that “All Tether is always backed 1:1 by conventional currencies held in reserves. Therefore, 1 USDT is always 1 Equivalent to USD.” This prompted the company to change the terms to “Tether Tokens are 100% backed by Tether’s Reserves.” This can include third party involvement.
Another lawsuit against the company from New York Attorney General Letitia James in 2019 sued Cryptocurrency exchange Bitfinex and Tether fraudulently used reserves to cover an $850 million deficit. The case also had to do with Crypto Capital Corp, whose Bitfinex-entrusted funds owned by iFinex were lost or stolen, prosecutors said.
Details of the case also revealed that funds transferred from Bitfinex to Crypto Capital Corp were part of Crypto Capital Corp funds seized in Portugal and Poland in the same year. Bitfinex therefore had to borrow $400 million from Tether until the seized funds under the control of Crypto Capital Corp were released.
By February 2021 iFinex, Tether, Bitfinex, Settlement Lawsuit with the New York Attorney General’s Office by paying $18.5 million.
Tether also fined $41.6 million In October 2021, to another inaccurate claim that the minted USDT was all backed by fiat currency. The truth is that the backing was a combination of several assets, including fiat dollars That was it.
USDC
USDC is another digital dollar that is pegged 1:1 to the dollar. It is designed so that each USDC in circulation is backed by a reserve of 1 USD. USDC was launched in 2018 by the Center Consortium consisting of Circle and Coinbase.
USDC as a multi-chain stablecoin
Starting in 2020, USDC will be upgraded to enhance its use in payments, commerce, and peer-to-peer transactions. It also started on the Ethereum blockchain as an ERC-20 token, but is now available on several tokens. blockchainSolana, Stellar, Algorand, Polygon, Hedera, Flow, Tron, and Avalanche.
market data
USDC currently has a market capitalization of about $45 billion, has 1.5 million different wallet holders.Top 50 wallet holders 33.78%the top 100 holders have 39.83%GrantThornton is currently auditing the USDC.
lawsuit
In September 2021, the U.S. SEC issued a Wells Notice to Coinbase, the official way to notify companies of potential lawsuits, related to the Lend product. According to Coinbase, the Lend product allows a user to earn interest on certain assets in his Coinbase, including her USDC.Lend products are Cancel because of the lawsuit.
A month later, another USDC issuing partner, Circle received Subpoenas from the SEC to verify stock exchange holdings, client programs and operations. This legal action has so far prevented Circle from going public.
at the end
Stablecoins are among the most important, cryptocurrencies designed to protect traders and investors during market volatility, are less complex than other cryptocurrencies, and enhance payments for unbanked individuals. can.
Please also read this.
Why All Exchanges Should Hold Stablecoins
Stablecoins; what are they and what types are there?
