What guarantees the value of USDC in the face of market fluctuations?

3 answers

• Dec 06, 2021 · 3 years ago
  USDC, also known as USD Coin, is a stablecoin that is pegged to the value of the US dollar. This means that for every USDC in circulation, there is an equivalent amount of US dollars held in reserve. This reserve ensures that the value of USDC remains stable, even when the cryptocurrency market experiences significant fluctuations. The transparency and regular audits of the reserve also provide additional assurance to users that the value of USDC is backed by real-world assets.
  482241
• Dec 06, 2021 · 3 years ago
  The value of USDC is guaranteed through a combination of factors. Firstly, USDC is issued by regulated financial institutions, which adds credibility and trust to its value. Secondly, USDC is backed by a reserve of US dollars held in custody by these institutions. This reserve ensures that there is always a 1:1 ratio between USDC and US dollars, providing stability to its value. Lastly, the transparency and regular audits of the reserve further reinforce the guarantee of USDC's value.
  489163
• Dec 06, 2021 · 3 years ago
  USDC's value is maintained through a reserve of US dollars held by regulated financial institutions. These institutions are responsible for ensuring that the amount of USDC in circulation matches the amount of US dollars held in reserve. This ensures that the value of USDC remains stable and is not subject to the same level of volatility as other cryptocurrencies. The transparency and oversight provided by these institutions offer reassurance to users that the value of USDC is protected even in the face of market fluctuations.
  532133