- The department has hinted at more than $10 million in exposure to FTX
- He also hinted at the loss due to Binance’s automatic conversion
in newly On Twitter, Circle’s Jeremy Allaire said USDC had little exposure to FTX. He did not specify in the matter what capacity or how much money was at stake.
anyways, Circle Only revealed the amount of exposure they have to do FTX Plus many other key facts about the company in a document released to the public. Do users need to worry?
Reasons for missed Circle predictions
Circle was hit by $10.6 million for FTX, according to its most recent revision S-4 Statement With the Security and Exchange Commission (SEC). The funds were used to invest shares in the FTX Group. This basically adds to the list of FTX victims even though it might not sound like a lot of money by Circle standards.
binancecryptocurrency exchange, advertiser In September, USDC will be converted to BUSD automatically. Although Circle did not have the resources to determine the exact impact of Binance’s automated USDC to BUSD transfers on the decline in USDC in circulation, they did note a gain of nearly $3 billion in BUSD Between August 17th and September 30th. The additional $13.5 billion that Circle has issued since June 30 represents a 36% decrease from 2021 levels, the company said.
Circle mentioned in the application that the decline in the value of USDC in the market was affected by the interest rate hike in the United States. The company claims that users are shifting their investments away from cryptocurrencies and into government bonds due to rising interest rates.
In search of security and diversification, even cryptocurrency companies such as MakerDAO have recently announced government bond purchases.
Stock market values drop
According to CoinmarketCap’s USDC Market Cap, Stablecoin’s market cap has been declining in recent weeks. As of this writing, it was clear that things were starting to look up. Fear and potential uncertainty (FUD) after detection of FTX may contribute to the condition observed.
The Historical data It also revealed significant fluctuations in trading volume in recent weeks.
A news circle recently appeared on Announces It has started to support Apple Pay. The company believes this could be a boon for crypto-based companies by allowing them to accept payments from non-crypto consumers on their chosen exchange while allowing their crypto-using customers to use Apple Pay to get cryptocurrency.
ropes though USDT Having the largest market cap, USDC was the second largest stablecoin at the time of writing. It appears to have been shaken up from the previous event like the rest of the crypto sector. But now it seems to have found its foundation. Potentially reassuring news for holders of the second largest stablecoin.