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> I'm far from a crypto expert so could you clarify what I'm missing? USDC isn't an algorithmic stablecoin or backed by non-cash assets. It is a coin that is r

by mike_d 4y ago

> I'm far from a crypto expert so could you clarify what I'm missing? USDC isn't an algorithmic stablecoin or backed by non-cash assets. It is a coin that is redeemable 1:1 for cash, always. They have approximately $40b in coins and is only "short" $3.3b. Right now the first 91% to redeem can still get a full dollar, not everyone who redeems gets 91 cents. People who have no idea how it works are panic selling fearing a crash. Other people are buying up as much as they can because you're effectively selling someone a dollar bill for 95 cents, a deal I'd take every day.

PheonixPharts 4y ago
> It is a coin that is redeemable 1:1 for cash, always. That's what I realized after doing some more research. This is really a test of Circle's claims. If circle really has 1-1 liquid assets to cover all USDC, this is a non-issue and many people will make some very easy money after this weekend. If, however, it's assets are not as liquid as claimed or not as 1-1 as claimed, then USDC and Circle will likely collapse Monday morning, quite possibly taking down Coinbase and much more with them.