USDC Redemptions. Source: CryptoQuant
Moreover, Ki Young Ju believes that the USDC situation is totally different from the TerraUSD (UST) to collapse. The Luna Foundation Guard sent billions in BTC to crypto exchanges for the issuance of Terra (LUNA) to maintain the peg, risking it being crashed by market makers.
Also Read: Binance Switches To Multiple Stablecoins, Stops Automatic Conversion Policy
USDC is the only regulated stablecoin backed by cash reserves backed by traditional financial institutions on public blockchains. Circle’s failure will hamper US financial institutions’ plans to launch global financial companies on public blockchains.
On-chain data also shows that exchange inflows have exceeded $7 billion in two days. Meanwhile, currency outflows have also reached nearly $6 billion in two days. The USDC remains pegged at $0.91.
Currency exchange inflows in USD (total). Source: CryptoQuant
This post Circle’s USDC redemptions hit $2.5 billion, Exchange inflows $7 billion
was published first on https://coingape.com/circles-usdc-redemptions-reaches-2-5-billion-in-24hrs-exchange-inflow-7b/