In May 2018, Circle, the creator of the Poloniex exchange, announced the launch of a new cryptocurrency. In September, the tokenized dollar - the cryptocurrency USD Coin (USDC) – was already actively used.
USDC is a coin that acts as a digital analogue of the US dollar, but with the ability to use it on the Internet with a minimum commission, maximum speed and a high level of security. The token provides great opportunities for the average consumer or business, regardless of geolocation. The USDC is stable, but it is this fact that is being criticized in the field of cryptocurrencies. This is due to the fact that the coin is completely under the control of issuers, which violates any requirements for the decentralization of digital money.
Based on the results of Skew's analysis, the coin is gradually gaining popularity, according to CoinMarketCap, it is on the 23rd place in the TOP 100 cryptocurrencies.
In comparison with other tokens, the described asset has never experienced problems with listing on crypto exchanges. The asset was almost immediately added to many platforms and became an accessible tool for traders. The exchange rate is estimated by analysts as stable, so there is excellent support with fiat funds.
The project is a joint work of 2 companies, including Coinbase and Circle. However, the development of the cryptocurrency was carried out by their subsidiary organization Centre Consortium. The creators of the digital currency did not use their own blockchain for work, so they took the Ethereum platform as the base, all USDC tokens under the ERC-20 standard, but the situation may change in the future. The developers claim that the coin has several differences in comparison with standard stablecoins. They claim that digital money is considered to be a complete analogue of US dollars, so USDC cannot be bought or sold for USD in order to generate income. It is possible to use direct conversion in the ratio of 1:1. However, many analysts note the fact that the coin is relatively young, so it is not worth talking about 100% work on this algorithm yet.
Considering the coin from the technical side, it can not be said that it has anything special. There are interesting facts about the creators themselves, listing on the stock exchange, and other data, but it does not have much new information. Analysts say that this has both advantages and disadvantages. USD Coin is a web application, it is suitable for the purchase and use of USDC tokens, which give full stability. The project is made on an open source framework.
The USD Coin coin provides:
Full financial transparency, which is supported by the reporting of independent auditors. Carrying out activities within the framework of all the laws of America. The work is carried out together with banks and other partner auditors. The system is open source. The participation scheme is open. The main purpose of the creation is the introduction of a new token to improve the security of traders and investors, reduce the risks of asset losses. This is achieved by linking to US fiat money, but other cryptocurrencies are subject to strong volatility.
Circle is a special platform for trading cryptocurrency, which appeared on the market in 2013. This exchange performs payments based on the blockchain. Transactions are conducted without fees worldwide. The main activity of the organization is financial transfers via the Internet. The main motto of the company is the work of money like the Internet with openness, freedom and ubiquity with maximum protection against theft.
USD Coin can be purchased on the following exchanges:
Coinbase; Poloniex; BitFinex; Binance; CoinEx; DigiFinex; Korbit; Liquid.
In total, more than $ 3 billion has been invested in the project. The coin is in demand on the market and its capitalization continues to grow.
You can store USD Coin on any wallet with support for ERC-20 technology, which means that any ether wallet will be suitable for the USD Coin coin, which are very many and they differ significantly from each other, and everyone will be able to choose a wallet that meets their needs and tasks.
What wallets exist? Software wallets, hardware wallets, online wallets, and a heavy wallet, to install which you need to download the Ethereum blockchain.
One of the most popular software wallets is Electrum, which is simple and easy to use, and has a high degree of reliability.
There is another good option for storing USD Coin online, this is the Coinbase multicurrency wallet. What is convenient for such a wallet? First of all, if you are going to store not one cryptocurrency, but many different cryptocurrencies, having a multi-currency wallet, you will not have to start a separate wallet for each crypto coin, it is very convenient to store all the coins in one place. This is a good, convenient and reliable wallet, it allows you to enter any minimum amount without commission. For the withdrawal of funds, there is a small commission that miners receive, there is a safe on this wallet.
If you plan to start a USD Coin wallet to collect crypto coins from cranes, then Coinbase is a very good solution.
As a conclusion for all the information presented, you should understand what the future of USD Coin is. The coin has all the features and high chances to become the best stablecoin, which will withdraw its analogues from the market – USDT (Tether) and TUSD (TrueUSD). The USD Coin coin has all the advantages of the blockchain, full compliance with the legislation and standards of banking organizations. For investors, it provides a wide range of opportunities.
The Centre plans to form an extensive ecosystem that will work with a single digital currency available anywhere in the world. However, experts have only one question – what will happen to the coin in the next crisis, a sharp drop in the dollar. This is the main problem of the coin, which is provided with real money, and it is almost impossible to solve it.
Another problem is verification on a platform that violates the rules of cryptocurrencies. After all, the user will not be able to fully maintain confidentiality, this is not like many investors and depositors. However, a big plus is the ability to use the digital dollar with almost no commission for transfers to any point in the world. All transactions are carried out in a matter of seconds, providing a significant role for traders and investors. If USD Coin can actually knock out Tether from the crypto market, then we can confidently talk about reliability and prospects.
USD Coin – an interesting coin, backed by the US dollar, but it has unclear prospects. An increase in the value of the asset is not expected.
Based on the above, we can make a small conclusion, the Circle organization has created a convenient tool that simplifies the execution of financial transactions related to the replenishment and withdrawal of real funds. Based on the company's promises, the issue of USD Coin will take place according to banking standards.