Discover The Decentralized Solution To USDC: The Ultimate Alternative
Say goodbye to USDC and hello to my decentralized alternative
I must say that this past week will go down in crypto history, and there are many lessons to be learned. The collapse of SVB, one of the world's largest tech banks, which held $3.3B of Circle's USDC, has caused a centralized stablecoin with a market cap of almost $50B to lose its parity with the dollar.
On Saturday morning, those who had all their money in USDC had lost over 10% of their portfolio, and many people remembered the case of Luna and its UST coin. However, I must clarify that this event is not related to the Luna case.
Although Circle is an audited company with all its assets in balance, we cannot do anything if a centralized entity goes bankrupt. This incident gives us a critical insight into the importance of having your money decentralized. BTC and ETH, as usual, were unaffected.
A few weeks ago, I mentioned a strategy to hedge against the parity of stablecoins. If you had used it with USDC during the crash, you could have made x40 in just a few hours. In crypto, unlikely events are not so unlikely.
USDC is now almost back to its expected parity, which makes me very happy for several reasons. Firstly, it proves that if the accounts are audited, the assets really exist. Secondly, situations like this make these stablecoins more robust.
Many of you have asked for my opinion on USDC, and I always say the same thing: "It is a very good centralized stablecoin." However, as I mentioned earlier, there is always a risk of centralization. That's why I want to introduce you to one of my favorite stablecoins.