In the world of cryptocurrency, volatility is the norm. However, the recent news of Circle burning a massive $649.3 million in USDC has caused a stir in the community. The news was announced on Twitter by Nansen, a blockchain analytics platform.
According to the tweet, USDC has now recovered to around $0.96 after the significant burn. This update comes after the news that Circle had burned an incredible $2.34 billion in USDC tokens in just 24 hours, as reported by AZCoin News.
Currently, $USDC has recovered to ~$0.97
UPDATE: Circle burned $649.3 million $USDC and minted $16.7 million in the last 24 hours
It has slowed down significantly from the previous day pic.twitter.com/Znn6A45bWi
— Nansen 🧭 (@nansen_ai) March 12, 2023
The burning of such a large amount of USDC is significant for several reasons. USDC is a stablecoin, which means it is pegged to the US dollar, making it less volatile than other cryptocurrencies. Circle, the company behind USDC, has pledged to cover any potential shortfall of USDC if its bank, Silicon Valley Bank, fails to return 100% of its deposits.
The burn and minting of USDC tokens by Circle have also raised concerns about the transparency of stablecoins. Critics argue that the lack of regulation in the stablecoin market could lead to potential fraud or market manipulation. The burning of such a large amount of USDC has added fuel to these concerns.
Despite the concerns, Circle has remained confident in its stablecoin. In a recent statement, the company said that it is committed to maintaining the stability and transparency of USDC. Circle has also pledged to maintain full backing for USDC with cash and short-term U.S. Treasuries.
As the cryptocurrency market continues to evolve, it is clear that stablecoins will play an increasingly important role. However, it is important for regulators to address the concerns raised by the burning of USDC tokens and ensure that stablecoins remain transparent and reliable.
In conclusion, the burning of $649.3 million in USDC by Circle has caused a stir in the cryptocurrency community. While Circle remains confident in its stablecoin, concerns about transparency and regulation persist. As the market evolves, it is important for regulators to ensure that stablecoins remain reliable and transparent.
Read more:
- Circle Pledges To Cover Potential USDC Shortfall If SVB Fails To Return 100% – USDC Repegs Gradually
- Silicon Valley Bank Collapse Leaves Blockchain VCs With $6 Billion In Assets