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That Coinbase, the US company, can be held accountable for USDC, and falls within the reach of the FBI. If USDT fails and goes to 0, people will lose their mon
by andruby 5y ago
That Coinbase, the US company, can be held accountable for USDC, and falls within the reach of the FBI.
If USDT fails and goes to 0, people will lose their money, and probably no government will be able to go after the creators of USDT (Bitfinex?) and their "collateral".
If USDC fails, the US government can actually make Coinbase responsible. And that's a public company with a 51B USD market cap. As a holder of USDC, you could reasonably expect to see some money back.
- jqpabc123 5y ago... you could reasonably expect to see some money back. Maybe, maybe not. USDC is not legal tender. Coinbase could easily argue it is nothing but monopoly money with a value of $0USD.
- benreesman 5y agoBankruptcy proceedings start complicated with individuals and go straight up from there, so you're definitely right to point out that there are no guarantees. But the point is that the USDT people are already some combination of accused/investigated-for/sanctioned-for misrepresenting the amount and quality of the collateral, seem to have very little to lose by doubling down and to many (most?) people look like a worse credit risk than CoinBase.