On July 18, the USDC fund conducted a burn of 55 million USDC on the Ethereum network, equivalent to nearly 55 million USD.
This activity aims to adjust the USDC supply in the cryptocurrency market, helping maintain stability and the 1:1 ratio with USD in the Ethereum ecosystem.
MAIN CONTENT
The USDC fund burned 55 million USDC on the Ethereum network.
An equivalent value of nearly 55 million USD was removed from circulation.
This move contributes to controlling the money supply, maintaining the stable strength of USDC.
What coin burn transactions has the USDC fund conducted, and in what amounts?
Based on data from Whale Alert, at 13:28 Beijing time on July 18, 2023, the USDC fund on the Ethereum network burned 55 million USDC, equivalent to about 54.992 million USD.
This is an important event closely monitored in the cryptocurrency industry due to its direct impact on the liquidity and supply of this popular stablecoin.
Why is the burning of USDC significant for the cryptocurrency market?
According to cryptocurrency finance experts, burning USDC helps balance supply and demand, protecting the 1:1 peg of USDC to USD.
This action avoids excessive issuance that could cause instability, while helping the market maintain trust and high liquidity for stablecoins.
Adjusting the supply of USDC according to market demand is necessary to ensure stability and reliability for users and investors.
David Marcus, Product Director of Stablecoin, spoke in July 2023.
How is the USDC coin burn process carried out on the Ethereum network?
This process occurs through smart contracts on the Ethereum platform, ensuring transparency and verification.
The USDC Treasury will send 55 million USDC to the burn address, the tokens are removed from circulation, enhancing the reliability of the system.
What is the impact of this USDC coin burn on users and investors?
Burning coins helps reduce price volatility risks and enhances stability in the DeFi and CeFi ecosystem using USDC.
Investors can feel more secure when participating in staking, lending, or holding USDC with a nearly fixed exchange rate.
Have similar coin burn activities been conducted in the cryptocurrency market before?
This is not the first time stablecoin issuers have burned tokens to control supply. USDC burn events have occurred multiple times to maintain financial safety.
For instance, in 2022, the USDC fund also burned tokens on a similar scale to stabilize the market amid many cryptocurrency fluctuations.
Frequently Asked Questions
Does burning USDC increase the price of this coin?
Experts say burning USDC helps maintain a stable exchange rate rather than aiming to increase the price, avoiding creating bubbles in the market.
How many other stablecoins apply similar token burn mechanisms?
Many stablecoins like USDT, BUSD have mechanisms to burn tokens to control supply and ensure fixed exchange rates.
Does burning tokens pose a safety risk to users?
The coin burn process is transparent through smart contracts and is conducted by reputable organizations, thus considered safe and reliable.
How can users track such token burn events?
Token burn activities are publicly disclosed on blockchain explorers and through monitoring tools like Whale Alert.
How does burning USDC affect DeFi applications?
Stabilizing supply helps DApps and DeFi protocols based on USDC operate smoothly and minimize volatility risks.
Source: https://tintucbitcoin.com/usdc-treasury-huy-55-trieu-usdc/
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