Jeremy Allaire, the CEO of Circle, recently took to Twitter to highlight the robust transparency measures underlying USDC, a stablecoin pegged to the US Dollar. Over the past month, Circle has issued $5B USDC and redeemed a notable $6.6B of the same.
Allaire proudly emphasized the 24/7/365 public visibility of USDC banking activities, including minting, burning, and settlements. The USDC reserves undergo monthly attestation by the esteemed Deloitte. And in a digital landscape often rife with opaqueness, Circle is setting itself apart. Monthly reports, which are readily available, shed light on the stablecoin’s liquidity, 90% of which resides with a major global bank.
The Tether Conundrum: Suspicion in the Shadows
As Circle flaunts its clarity, the crypto community is aflutter with speculations about Tether (USDT). A chart depicting Tether’s surging market capitalization, in stark contrast to USDC’s, raised eyebrows. Travis Kling posed a question on Twitter that many were mulling over: Why does Tether continue to gain traction despite concerns?
Crypto expert Adam Cochran provided a theory. He said that it’s potentially lucrative for Tether to sell at a loss, withdraw USD from USDC, reissue it as USDT, and invest in money market funds. This strategy might yield returns and undermine competitors like USDC. The critical players in this game, according to Cochran, were giants like FTX, Binance, and Binance US.
Unravelling the Tether Loop
Diving deeper into the tethering web, Cochran implied that Tether might use a plethora of OTC desks to circumvent regulations and perform the speculated transactions. He also pointed towards shell companies connected to Justin Sun, potentially involved in these crypto manoeuvres.
When WhaleAlert tweeted about a massive transfer of $200M USDT from JustLendDAO to an unknown wallet, Cochran promptly identified Justin Sun’s possible role in the shuffle, likening it to an “Alameda trick”. This high-stakes game of cat and mouse could end in Sun’s miscalculation, Cochran hinted, ensuring that he’ll be vigilant.
The Justin Sun Enigma
Public blockchain records, coupled with Cochran’s insights, indicate that Justin Sun withdrew $60M from the Huobi exchange. This withdrawal seems to coincide with reports of Huobi undergoing internal investigations. Cochran’s observations indicate that the withdrawn assets might have been channelled to a Binance deposit wallet. The crypto maestro seems to be advising trust in Huobi while simultaneously divesting from it.
While USDC stands tall with its unwavering commitment to transparency and accountability, Tether’s path seems riddled with twists and questions. As the digital currency realm matures, the need for clarity becomes paramount. But until then, the world watches, tweets, and speculates.
