Native USDC on Base 2023
This was announced by stablecoin issuer Circle on its blog:
Circle provides USDC natively on new blockchain networks to allow developers to build on a stable foundation they can rely on. Native USDC is officially issued by Circle and is always exchanged 1:1 for US dollars.
The company’s future plans are to launch on the Cosmos (ATOM), NEAR (NEAR), Polkadot (DOT) and Polygon (MATIC) blockchains during the fall.
Infrastructure expansion for U.S. retail continues. EFT adoption is just around the corner! 🔥
Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to a specific asset like the US dollar.
Stablecoins achieve stability through collateralization, algorithmic mechanisms, or a combination of both.
Stablecoins can be categorized as centralized or decentralized, and some are over-collateralized with assets like BTC, ETH, or other cryptocurrencies.
The four largest stablecoins are USDT, USDC, BUSD, and DAI.
USDT is issued by Tether Limited in a 1:1 proportion to fiat dollars deposited by users.
USDT is backed by a mix of assets, including cash, US Treasury bills, precious metals, Bitcoin, and more.
Yes, Tether Limited can freeze USDT accounts for various reasons, including legal requirements and security concerns.
USDC is issued by Circle in collaboration with Coinbase and is backed by cash and short-term US Treasury bonds.
USDC lost its peg briefly when Circle announced holding $3.3 billion in reserves with the Silicon Valley Bank.
BUSD is issued by Paxos and Binance, primarily on the Ethereum blockchain as an ERC-20 token.
Binance stopped supporting USDC, USDP, and TUSD stablecoins, converting balances to BUSD.
DAI carries risks related to its over-collateralization model, including liquidation if collateral falls below required levels.
Algorithmic stablecoins rely on specific mechanisms to mint or burn tokens based on market conditions.
Stablecoins can face regulatory actions if they violate securities laws or other regulations.
Companies use tactics like FUD campaigns, media manipulation, and regulatory allegations to sway users and undermine competitors.
Stablecoin issuers profit from short-term investments of reserve funds and by providing redemption services with fees.
The best stablecoin depends on your specific needs. USDT, USDC, BUSD, and DAI are popular choices.
Yes, diversifying your stablecoin holdings can help reduce risk in your cryptocurrency portfolio.
Stablecoins are generally considered safe for preserving capital and conducting crypto transactions.
Consider factors like stability, issuer reputation, regulatory compliance, and use case to choose the right stablecoin.
Centralized organizations like Tether Limited and Circle have control over stablecoin issuance and infrastructure.
Stablecoin issuers can freeze accounts to comply with legal requirements and protect the stability of their stablecoin.
Stablecoins aim to maintain a stable value, making them suitable for transactions and capital preservation, unlike the price volatility of traditional cryptocurrencies.
Risks include counterparty risk, regulatory risk, market risk, liquidity risk, and technological risk.
Algorithmic stablecoins face challenges due to past incidents and regulatory concerns, but their future depends on regulatory decisions and market acceptance.
A cryptocurrency exchange is an online platform where you can buy, sell, or trade cryptocurrencies like Bitcoin, Ethereum, and others.
Safety varies by exchange. Look for platforms with strong security measures, like two-factor authentication and cold storage for funds.
Consider factors like security, fees, available coins, user interface, and customer support.
Centralized exchanges are managed by a company, while decentralized exchanges operate without a central authority.
Many exchanges require Know Your Customer (KYC) verification for security and regulatory compliance.
Trading fees vary but typically include maker fees (for adding liquidity) and taker fees (for removing liquidity).
Yes, most exchanges offer cryptocurrency-to-cryptocurrency trading pairs.
Withdrawal times depend on the exchange and the cryptocurrency. Some are instant, while others may take hours or even days.
A wallet address is like a bank account number for cryptocurrencies. It’s required to send your crypto to the right place.
Yes, depending on your country’s tax laws, trading cryptocurrencies may have tax consequences. Consult a tax professional for guidance.
Yes, many cryptocurrency exchanges operate 24/7, allowing you to trade at any time.
A market order buys or sells at the current market price, while a limit order sets a specific price at which you want to buy or sell.
Yes, each exchange sets its own minimum and maximum trading limits, which can vary widely.
It’s not recommended. For security, it’s better to use a cryptocurrency wallet, especially for significant holdings.
Exchanges typically have account recovery processes, including password reset options and support for forgotten usernames.
Some exchanges offer insurance, but coverage can be limited. It’s essential to check an exchange’s insurance policy.
Use strong passwords, enable two-factor authentication, and be cautious of phishing scams and suspicious emails.
Yes, but it’s recommended to learn the basics of trading and understand the risks involved before you start.
Stablecoins are cryptocurrencies pegged to the value of a fiat currency like the US dollar. They provide stability and are commonly used for trading and transferring funds on exchanges.
Yes, regulations vary by country. Many countries have implemented or are considering regulations to govern cryptocurrency exchanges for consumer protection and financial stability.
