Topic: USDC is not safe - page 4. (Read 1121 times)

the thing I see clearly is how binance has a stable coin that is BUSD. i think it would be great to divert our assets in BUSD as it is clear in its reserves with binance from any stable coin. I think that's enough of how we should trust it as a safe stable coin.

There are several ways to keep your stable coins safe, depending on your preferences and needs. First, you can store your stable coins in a trusted wallet such as a hardware wallet or a secure software wallet. This will guarantee that your stable coins are not accessible to unwanted third parties. Secondly, you can store your stable coins on regulated and trusted exchanges, which have a good security system in place to protect their customers' assets. However, it also carries a higher risk as exchanges can experience attacks or theft. So, it's best to consider carefully before deciding on the best way to keep your coins stable.

So far, withdrawals on Binance have been no problem, even though the withdrawal amount is estimated at around 6 billion, and everything is very smooth.
In my opinion, there is no need to hold various stablecoins because once they are centralized nothing is safe, and holding them on centralized exchanges is already unsafe.
Currently, converting from fiat to stablecoins is relatively easy, and if we do not need to use that money, it is safer to change to fiat than to hold stablecoins in fear.

It seems to me that this is far from the way you write!! I believe that each token is assigned one dollar! Otherwise, it's all weird! Even each erc token has some value behind it, otherwise where would the volume come from?? If nothing is assigned to it, it means that it has no value in itself and it has no volume! I think it's a misconception that Tether is not pegged to the dollar!

If there is a distrust of stablecoins, it is necessary to leave only the part that is necessary for trading, and convert the remaining stablecoins into fiat. Converting to fiat and back to stablecoin takes very little time and commission, but it will bring you confidence in the future.

Which stablecoin is safe guys? Whenever there is a Bull market, Tether is printed and launched. This makes me insecure. Who prints the Erc20-based Tether, for example? That means it's a central situation. Isn't it against the logic of Blockchain? I am currently doing my transactions with Busd. Already, CZ is delisting some trading pairs to strengthen Busd, while doing nothing to trades with Busd. Is there a stable coin that you call strong or reliable? For example, could Dai be one of them?

But they resumed the withdrawal after 8 hours, and the CEO of Binance mentioned the reason for that action they took, but if you feel panic and uncomfortable, you can divide your funds into other safe stablecoins. I have been reading negative news about USDT for days and today I see that people are posting FUD about USDC even though Changpeng Zhao tried to calm investors' fears via his Twitter account but to no avail. For me, I put the largest part of my capital in BUSD and put the other parts of my capital in USDT and USDC in anticipation of anything happening so that my loss is not huge, so be assured and divide your capital and do not put it all in one stablecoin, this is the perfect solution.

Do you know that recently binance has stop the withdrawals of USDC? I know they have given a proper reason to it but again i dont feel comfortable with any of these stable coins. Previously i thought BUSD might be the better of these stable coins but the recent Binance fud change my mind.

What i hope that none of these stable coin collapses, as if it happens it will be very bad for the overall crypto market.

At the moment (and in the foreseeable future) no centralized stablecoin is safe. Period. Unless you have no other options in or outside crypto, do not keep money in stablecoins for any amount of time beyond what you need the stablecoin for (trading at an exchange that doesn't accept fiat, paying for goods to a merchant that only accepts stablecoins, etc.). By keeping money in a centralized stablecoin you are getting the downsides of the traditional financial system (intermediaries can easily control and freeze your money) without any of the protections afforded by battle-tested regulations of that financial system (your money is not insured and if something goes really wrong, as it has several times already, your "dollars" are gonna be worth as much as the Zimbawean dollar).

Now what I stated is a theoretical statement based on (IMO) a rational assessment of the pros and cons of stablecoins. However, if that has not convinced you, let's look at some examples. Starting with the biggest elephant in the room - Tether / USDT. Let's just check their Wikipedia page for the thing that matters the most to any stablecoin holder - whether their stablecoins are backed by real US Dollars:


(I've specifically left the source numbers in to make a point that these statements were sourced from external publications)

If this is not giving you massive warning signs, I don't know what will. If you're looking for a more in depth perspective of what USDT is and who its run by, I'd recommend Youtuber Coffezilla's "Exposing Tether - Bitcoin's Biggest Secret" as a starting point. While I do find him a bit too clickbait'y in his style, the points he presents are solid and it's a great tl;dr, even if you're not interested in researching the topic further.

Moving over to Binance's BUSD, while it seems to be less risky than USDT (which is a very low bar), it's important to not just look at what BUSD is, but what Binance is. While it seems to be one of the largest, if not the largest, cryptocurrency exchange offering a product whose security relies on a strong regulatory environment, the company is established in the Cayman Islands, a well known financial offshore territory. They did open a separate entity (Binance.US) for their US customers (after Binance was banned from operating in the US) "which nonetheless is banned in six states: Hawaii, Idaho, Louisiana, New York, Texas, and Vermont". Furthermore, according to a Reuters special investigation "How Binance CEO and aides plotted to dodge regulators in U.S. and UK", it seems like Binance isn't really a big fan with having to comply with government regulations, sometimes even (allegedly) through legally questionable means such as backdating documents intended to avoid new laws. Stepping away from all the regulation stuff, we have Binance's Binance Smart Chain, which the exchange seems position as part of decentralized finance in its marketing (e.g. Binance in its article "Binance and BNB Chain: What’s the Difference?" states that "BNB Chain was originally initiated by Binance but has since grown to become a community-driven, permissionless, and decentralized blockchain ecosystem.") yet, according to a Messari researcher, it seems that Binance Smart Chain and its accompanying Binance Chain seem to be effectively centralized.

Now to be fair, it's indeed true that BUSD was founded by Binance in partnership with Paxos with Paxos holding the reserves (as per the their Wikipedia article), I'd still be skeptical as in large and complicated systems with a lot of moving parts, there's still ways those systems can collapse on their own, let alone if any malice is involved (e.g. something going wrong with the Binance issued Binance-Peg BUSD)

And now we've reached USDC. Ironically, of all the big centralized stablecoin players I consider USDC as the least questionable player. While I don't know the credibility of the claims that USDC is in trouble (as cited by OP), if those allegations are true, that should tell you everything you need to know about how trustworthy any stablecoin is, let alone the less reputable ones.

P.S. While some users might jump in and suggest DAI (or similar decentralized stablecoins) as alternatives, do keep in mind that there's been reports that more than half of DAI's collateral is comprised of USDC. So if there are any major centralized players, decentralized collateral-based stablecoins might be subject to similar pitfalls to their centralized counterparts. And if we were to turn to algorithmic stablecoins, I think most of us remember the UST death spiral.

P.P.S. If you want to keep a substantial amount of money in USDC or in any other stablecoin for those high (and usually completely unsustainable and / or incredibly risky) returns in an attempt to avoid inflation slowly eroding your assets, I'd recommend checking this post of mine out for ideas.

None is safe, it is only a matter of when one is suitable for our trading pair. This is not for long-term holding, that's why I never use stable coins for my long term holding. But, if as long it is used for trading pairs in certain exchanges, Ima still using them. But, I am also aware enough that this is high risk. Everytime in the crypto currency moreover in centralized platforms, which are regulated and limited by certain laws, regulations, and institutions, may not be safe 100%, not recommended100% for us. But sometimes, we only can use them for a while, at least, we know when to stop using them in the right time.

then I guess best course of action just diversify your wealth, even though realistically, every investment instrument has the risk of losing its value, but it's still better than just putting your money in one place, so that when there's accident like for the worst comes to worse just like UST you could still save some money so that you didn't really get affected that much, I think at this moment, there's always chance that the investments that you invested in, could literally turns into thin air.

Even though USDC is trying to show that its tokens have better security than USDT, but in fact, it is the same centralized stablecoin as Tether, and it is also subject to regulators. What kind of security and reliability can we talk about here? If you want better security and reliability than USDC and USDT, use DAI or stablecoins with similar security.

This article really aged well. USDC has weathered many storms, and obviously came through this particular issue unscathed, so maybe it is better than Tether(for now). But if you are looking for long term store of value why don't you split between USDC, USDT and BUSD?

That is true, just because they are huge doesn't mean that they won't fall down. Bernie Madoff had a 50+ billion dollar hedge fund, turns out it was all a scam, or Enron was a huge company worth billions, turns out it was a scam.

Just because something is huge, doesn't mean that it is not a scam, and on top  of that even if something is not a scam, they could fail too, look at nokia and panasonic, they were huge at some point, gone after smart phone era started, this is why there is absolutely no way that you could guarantee something to go n just because it is big right now. USDT is the same, scam or not, it could always fail and we should be ready for it, or just put it on decentralized coins.

You can't trust CASH in times of high inflation across the globe. If you keep your money in cash you are already on the losing side. If you want to keep the money outside crypto, Gold may be a good choice but Fait currency is not a good option.



Who told that BUSD is 100% backed by real money. Binance's proof of reserves raises red flags: Report. Once Binance faces any such issues, BUSD will be affected no matter what.

I don't know if who says that USDC is much safer than USDT when both of them are the same (centralized) but I think the reason why they say that is because they never heard USDC have been involved in any anomalies but now that it have one here I guess their views about USDC are going to change a little. DAI is algorithmic but unlike other algo stable coins. DAI haven't depeg yet right after the crash of Luna and UST. We are also in a crisis right now and there are no reports that DAI have depegged.

I guess that is safe to assume that DAI is the most safest stable coin up to this date. The best way to store our stable coins is via a hardware wallet or offline wallet (E.g an old/unused computer). If online, then just pick a non-custodial wallet. Lastly, don't ever store coins inside a crypto exchange.

A better way of holding your assets in stablecoin is in my opinion simply bitcoin, and after holding it for a long term, bitcoin may give you some profit if it goes up at a larger scale. In another sense, it can give the holder some loss as well. The only possibility in my opinion would be DAI, we can still use it as a stablecoin.

In this case i simply said that Stablecoins are safe like usdt , busd ,usdc etc but i think not any thing safe because its a crypto not anyone know what are going tomorrow but many people save there fund in the form of Stablecoins so they easily save there fund but not anyone know that which Stablecoins are not safe usdc ect are the old coins and many years regularly people use that coins.

DAI would be a better choice, I think so, I had always store my stable assets in DAI. Most probably I had store my little amount in bitcoin, but I don't store it there for any profit, as when the bitcoin falls or goes up there would not be any affect on my small assets. I don't tell others to do, but this is my ways for storing assets.

USDT is still considered a major stablecoin company.  But the bad market situation and various unbelievable scam incidents create a confusion in our mind for everything.  So no coin is 100% trustworthy at present. So don't leave your entire fund on a single coin at this time.  The entire fund should be divided into several parts and saved . In this case USDC, BUSD, USDT no peg  are not 100% reliable