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USDC has been audited and it's solid. I know of people in large banks who are working with USDC and they've vouched for it being 100% ok.

by sprafa 5y ago

X6S1x6Okd1st 5y ago
Yeah USDC appears to be solid, there are also algorithmic stablecoins that appear to be holding well even under 50% drops over 1 or 2 days (DAI appears to be the one working best)
albntomat0 5y ago
Wasn’t there confusion recently on whether it was fully cashed backed (per their website), when USDC actually had a bunch of other stuff in it?
ceejayoz 5y ago
> I know of people in large banks who are working with USDC and they've vouched for it being 100% ok. Sure, just like they did with AAA-rated mortgage CDOs before the https://en.wikipedia.org/wiki/Subprime_mortgage_crisis https://en.wikipedia.org/wiki/Subprime_mortgage_crisis. "The bankers say it's fine" is not the comforting statement you're making it out to be.
themagician 5y ago
USDC is better than Tether but far from “solid”. They still hold commercial paper, just 10% instead of 50%. The audit is a joke. Who knows what is really considered “cash equivalent”. Hell, it’s possible USDC holds Tether.
- querulous 5y ago
  remember the pirateat40 bitcoin ponzi scam? he was paying 7% interest A WEEK on deposits and all these copycat "funds" popped up paying 6% or 5% or whatever that were "safer". when the original ponzi collapsed all the "safer" funds were revealed to have just been taking their deposits and depositing them with pirateat40 and pocketing the difference. the whole ecosystem collapsed
  - themagician 5y ago
    This is (always) the way.
jqpabc123 5y ago
Coinbase modified the USD Coin page on its website after an audit revealed that not all USDC reserves are held in cash. The myth that each USDC is backed by one dollar has been shattered. https://liquidity-provider.com/news/coinbase-has-dropped-the-notion-that-usdc-is-backed-by-us-dollars/ https://liquidity-provider.com/news/coinbase-has-dropped-the...
graeme 5y ago
Not an audit, an attestation. They check assets at a moment and time.
- ceejayoz 5y ago
  Yup. Tether pulled the same trick repeatedly, and it was fraudulent. https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-... > Tether published a self-proclaimed ‘verification’ of its cash reserves, in 2017, that it characterized as “a good faith effort on our behalf to provide an interim analysis of our cash position.” In reality, however, the cash ostensibly backing tethers had only been placed in Tether’s account as of the very morning of the company’s ‘verification.’ > On November 1, 2018, Tether publicized another self-proclaimed ‘verification’ of its cash reserve; this time at Deltec Bank & Trust Ltd. of the Bahamas. The announcement linked to a letter dated November 1, 2018, which stated that tethers were fully backed by cash, at one dollar for every one tether. However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account. An actual audit looks at more than a bank balance snapshot.
  - FireBeyond 5y ago
    No, they had an audit, "really truly". And a full audit. But they could not release it. Because it was in Mandarin! You can't make this shit up if you tried. The interview with a Deltec VP after all that also revealed that Deltec is heavily intertwined. He said "we know they're fully backed because we can see the issuance of Tethers in the internal systems and the corresponding deposits". Like, interesting, your bank has insights into your internal systems? Curious.
elliekelly 5y ago
Anyone who works at a large bank and says any investment (let alone crypto!) is “100% ok” should be fired. That’s day one stuff.
lupire 5y ago
The measure "100%" OK does not exist in legitimate finance.

USDC has been audited and it's solid. I know of people in large banks who are working with USDC and they've vouched for it being 100% ok.

by sprafa 5y ago

USDC has been audited and it's solid. I know of people in large banks who are working with USDC and they've vouched for it being 100% ok.

X6S1x6Okd1st 5y ago

Yeah USDC appears to be solid, there are also algorithmic stablecoins that appear to be holding well even under 50% drops over 1 or 2 days (DAI appears to be the one working best)

albntomat0 5y ago

Wasn’t there confusion recently on whether it was fully cashed backed (per their website), when USDC actually had a bunch of other stuff in it?

ceejayoz 5y ago

> I know of people in large banks who are working with USDC and they've vouched for it being 100% ok. Sure, just like they did with AAA-rated mortgage CDOs before the https://en.wikipedia.org/wiki/Subprime_mortgage_crisis https://en.wikipedia.org/wiki/Subprime_mortgage_crisis. "The bankers say it's fine" is not the comforting statement you're making it out to be.

themagician 5y ago

USDC is better than Tether but far from “solid”. They still hold commercial paper, just 10% instead of 50%. The audit is a joke. Who knows what is really considered “cash equivalent”. Hell, it’s possible USDC holds Tether.

querulous 5y ago
remember the pirateat40 bitcoin ponzi scam? he was paying 7% interest A WEEK on deposits and all these copycat "funds" popped up paying 6% or 5% or whatever that were "safer". when the original ponzi collapsed all the "safer" funds were revealed to have just been taking their deposits and depositing them with pirateat40 and pocketing the difference. the whole ecosystem collapsed
- themagician 5y ago
  This is (always) the way.

jqpabc123 5y ago

Coinbase modified the USD Coin page on its website after an audit revealed that not all USDC reserves are held in cash. The myth that each USDC is backed by one dollar has been shattered. https://liquidity-provider.com/news/coinbase-has-dropped-the-notion-that-usdc-is-backed-by-us-dollars/ https://liquidity-provider.com/news/coinbase-has-dropped-the...

graeme 5y ago

Not an audit, an attestation. They check assets at a moment and time.

ceejayoz 5y ago
Yup. Tether pulled the same trick repeatedly, and it was fraudulent. https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-... > Tether published a self-proclaimed ‘verification’ of its cash reserves, in 2017, that it characterized as “a good faith effort on our behalf to provide an interim analysis of our cash position.” In reality, however, the cash ostensibly backing tethers had only been placed in Tether’s account as of the very morning of the company’s ‘verification.’ > On November 1, 2018, Tether publicized another self-proclaimed ‘verification’ of its cash reserve; this time at Deltec Bank & Trust Ltd. of the Bahamas. The announcement linked to a letter dated November 1, 2018, which stated that tethers were fully backed by cash, at one dollar for every one tether. However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account. An actual audit looks at more than a bank balance snapshot.
- FireBeyond 5y ago
  No, they had an audit, "really truly". And a full audit. But they could not release it. Because it was in Mandarin! You can't make this shit up if you tried. The interview with a Deltec VP after all that also revealed that Deltec is heavily intertwined. He said "we know they're fully backed because we can see the issuance of Tethers in the internal systems and the corresponding deposits". Like, interesting, your bank has insights into your internal systems? Curious.

elliekelly 5y ago

Anyone who works at a large bank and says any investment (let alone crypto!) is “100% ok” should be fired. That’s day one stuff.

lupire 5y ago

The measure "100%" OK does not exist in legitimate finance.