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USDC run is FUD

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This bear market has not been easy for everyone

Original author:Cicada ye about zen

Original title: coin Circle refutes rumors: "Circle or risk of a Run?" False information

Seeing the news that pops up on the information platform, I have an obligation to find out the source, and the truth of the matter, after all, Stablecoin USDC, what does that mean?

After checking the data, we really need FUD. The original picture is as follows:

On March 29, @cryptolnsider23 started Posting about "Risk of a run on Circle". But also called a lot of investors in order to cause panic in the market.

This is not the case for on-chain data viewing (figure below) :

(On-chain data Figure 1)

Figure 1 is the real-time dynamic trend chart of USDC chain transfer (Figure 1: the green column is USDC net transfer, the red column represents USDC net transfer, the purple column represents USDC transfer number, and the yellow line represents the average value of transfer). This article attempts to influence the overall market panic, resulting in a small effect today. But not as the trader @cryptolnsider23 wrote. Because of the run, thunder and thunder, the rapid decline in the value of Token generally occurs, and the frequent outflow of large amount of data on the chain. But that is not the case.

The tweeter in the above picture expounds the viewpoint of USDC mechanism, but I totally disagree with it. It is not easy in this bear market, so I strongly prevent the occurrence of FUD.

Push subjective point: Circle may be a run risk. Circle pays its USDC reserve deposit partners, Signature and Silvergate, more interest than cash deposits, about 5% a year, he says, which is why Circle continues to lose money, losing $500 million in Q1 2022. Total losses for 2022 are expected to be $1.5 billion.

Different views are mainly for the USDC and the signature has the risk of a bank run because of the risk that the lender cannot repay a large amount of USDC (billions of dollars). If a bank is forced to liquidate long-term assets at a discount to cover short-term liabilities, it is likely to become insolvent, and the amount of money lent is tightly regulated to prevent this. (It's not hard to see the discrepancy between the picture and what the tweeter said)

Further further, there is a 4-5 node error (the bank is not multiplied by reserves, it is multiplied by the bank's assets, and deposits are not part of the bank's capital).

In summary, Stablecoin does have a lot of uncertain risks. However, the editor always analyzes the matter with objectivity and truthful information.