November 5, 2020

What is USD Coin (USDC)

What is USD Coin (USDC)

There are a lot of cryptocurrencies that are connected to the U.S. dollar. They are called stablecoins because their price isn’t so volatile as other cryptocurrencies. All stablecoins depend on fiat money. One of these stablecoins is the USD Coin cryptocurrency. Let’s describe it in detail.

What is USD Coin (USDC)

Description

To be honest, in general, this is a classical stablecoin. It isn’t connected to the price of any cryptocurrency and can’t be exchanged with the dollar. This stablecoin is the last one and was created in 2018.

Let’s describe main the facts about this cryptocurrency:

  1. This token was developed in collaboration between Coinbase exchange and Circle Internet Financial. Due to this, this project is quite perspective in the future (but now it isn’t a unique cryptocurrency).
  2. This cryptocurrency isn’t based on its own Blockchain. Developers decided to use Ethereum Blockchain because it is so great.
  3. Developers say that this cryptocurrency is different from classic stablecoins. They think that this is an electronic analog of the American Dollar. This money can’t be changed to USD with a goal to get a speculative income because they can be exchanged in 1:1 proportion.

This is a very usual cryptocurrency. It isn’t revolutionary. Yes, developers say that but they want to attract investors.

A few words about developers

What is USD Coin (USDC)

As we said previously, the developers of this cryptocurrency is the Centre Consortium. This is a joint project consisting of a company and a cryptocurrency exchange. The main developer is Circle Internet Financial. Usually, this company is referred to as Circle. It was founded in 2013, and its main goal was to provide money transfers via the internet and protect transactions from illegal actions done by thieves.

This company provides four products:

  1. Circle Invest. This product is created to help investors that only recently have started their way. It supports any digital coin, not only USD Coin.
  2. Circle Pay. This service provides money transfers both digital and fiat. It is as easy as sending an e-mail.
  3. Exchange Circle Trade. This is their own cryptocurrency exchange.
  4. This is another cryptocurrency exchange that was bought by the Centre Consortium. It is very big.

All these projects are used by the Centre Consortium for promoting their services.

To sum up, we can say that this cryptocurrency isn’t unique. There are no advantages in the cryptocurrency that is connected to the dollar by a price. Yet, this token is developing, and it can be very perspective in the future. We can’t know it exactly. You can try trading this cryptocurrency, but you should understand that there is no need in exchanging this cryptocurrency to the dollar, only other currencies – both fiat and crypto.