Jeremy Allaire
We finally deal with the conclusions about which cryptocurrency is least exposed to the risks of sudden and sharp depreciation; and in which crypto the risk of sanctions freezes is minimal.
USD Coin, or USDC, is a stabelcoin issued by Circle Internet Financial Ltd. registered in the USA. The whole process of USDC functioning and development is managed by the (as if pseudo-independent) consortium Centre, which was founded by Circle itself together with representatives of Coinbase cryptocurrency exchange.
Let me say right away: it makes no sense to try to cover all of the existing steblecoins in one article. So below we will analyze largest tokens, whose daily total turnover is approximately 99% of the turnover of all steblecoins on the market.
Finally, there is no single best way to make a stablecoin or best trading bot, look at the reviews all of them has its cons and pros. Each has its own disadvantages or risks. What to say, even the generally accepted by the whole financial world as a "risk-free asset" represented by U.S. government bills turned out to be risk-free for not everyone.
DAI has a very interesting mechanism of value maintenance, completely different from the previous three stabelcoins. I tried to describe it in simple language in a separate big article - I recommend to read it (here I will give only very brief conclusions).
For each issued DAI with a face value of $1, cryptocurrency collateral with a current market value
While Tether boasts the largest capitalization and the best liquidity of any Stablecoin, there are some serious questions about its reliability:
The company has in the past publicly lied about holding reserves in only the safest assets, while covertly placing them in far less comforting things (like huge loans to related parties)
Like the USDT, there is no full-fledged audit (which is a pity), only a short report from an independent public accountant, issued monthly by Grant Thornton. By the way, in August 2021 Bloomberg drew attention to the fact that the wording of the USDC collateral on the Circle website changed dramatically in connection with the disclosure of more detailed information on reserves.
Jeremy Allaire is Co-Founder, Chairman and CEO of Circle, a global financial technology firm
