Where did the rumors of the collapse of USDC come from?

Where did the rumors of USDC collapse come from? A Twitter thread by @CryptoInsider23 said Circle was constantly losing money as the company raised money twice a year over the past year to pay for the ~5% incentive they offered.

According to Gerald Davidson (@CryptoInsider23) analysis on Twitter, Circle already lost $500 million in the first quarter of 2022 and is on track to lose a total of $1.5 billion this year.

Domino Effect

And in theory, USDC lends to high-risk lenders such as Genesis, BlockFi, Celcius, Galaxy, Alameda, and 3AC. If these lists are correct, then if USDC actually collapses, the aforementioned platforms are likely. to collapse together

He also described the Circle’s chance of collapse in his section. It’s worth a look if you want to get a deeper understanding of it.

as an investor What should you do?

After seeing what happened to UST holders with stablecoins in their portfolios as cash allocations. or holding “Safety” to avoid high volatility I think no one would want to experience the sight of their savings going 90%-100%.

If USDC collapses, this will have a significant impact and cause distrust in the crypto market as a whole. Therefore, one should keep an eye on this.

While the risks of USDC may only be FUD (fear, uncertainty, and doubt), the safest thing to do right now is convert it to USD or buy BTC and store it in cold storage like Ledger and endure until the chaos is over

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