Circle’s USDC Stablecoin Looks to Topple Tether (USDT) with Complete Audits for Transparency
The USD Coin (USDC) has recently released another audit report regarding the funds it has and that it uses to back the cryptocurrencies issued. Tether (USDT), the largest and most popular stablecoin has been attacked several times for not releasing a clear report regarding the funds that the company has.
The report was published back on February 15 and it brings transparency to the cryptocurrency industry.
Circle, the company behind USDC, released a fourth report related to the stablecoin. The report was signed by the leading auditor firm Grant Thornton. The results show that Circle has sufficient USD reserves to back the coins that it has issued to the market. Each USDC represents $1 dollar and users can redeem their coins for USD at any moment requested.
As per the report released by the company, there were 307,793,724 USDC tokens issued and the company held $307,848,312 dollars in deposits. That means that they had an excess of $54,5800.
The market capitalization of USDC has been growing since it was launched back in October 2018. In January 2019, the market capitalisation started to decrease and during the last weeks, it remained stable.
Although the report brings transparency to the market, there is a Twitter user called ICO Scam Alert that has raised some concerns regarding the data provided by the company. He said that Goldman Sachs struggles for doing Grant Thornton an auditor of the USD Coin. Coinbase has also hired a new UK compliance chief (Mark Kelly) that worked at Grant Thornton as well.
ICO Scam Alert went on explaining that Circle is trying to prove that the audit was independent. The question that the Twitter user asks is if USDC is really backed by US dollars, why don’t they ask for an audit from someone else rather than a partner?
Although it can be argued that Kelly’s appointment to Coinbase UK could compromise the audit report, it is possible to see that there is a genuine interest in increasing transparency in the space. Tether (USDT) has several times been criticized not to give clear information about the funds that it handled.
At the time of writing this article, USDC is the 23th largest virtual currency in the market with a market capitalization of $246 million. Tether, instead, is the 7th largest cryptocurrency with a market capitalization of $2.03 billion.