The USDC fund has burned 50 million USDC on the Ethereum network to reduce the circulating coin supply.
MAIN CONTENT
The USDC fund carries out the burning of 50 million USDC on Ethereum.
The corresponding value of approximately 50 million USD is removed from circulation.
This action affects the supply and liquidity of the USDC cryptocurrency.
What is the burning of 50 million USDC by the USDC fund and why is it important?
The USDC fund has actively burned 50 million USDC on the Ethereum network, equivalent to nearly 50 million USD, to reduce the supply of this cryptocurrency. This is a common money supply management measure in the stablecoin ecosystem to balance the market.
Coin burning helps control liquidity, minimize inflation risk while keeping the price of USDC stable. This activity supports increasing investor and stakeholder confidence, especially in the context of a volatile cryptocurrency market.
When and how is USDC burning performed?
According to Whale Alert, the burning of 50 million USDC occurred at 22:03 Beijing time on the Ethereum network. This process is usually carried out through smart contracts on the Blockchain, ensuring transparency and immutability.
At the same time, the coin burning action is publicly reported on On-chain monitoring channels to increase authenticity and transparency for the community, helping investors closely monitor the supply situation of this stablecoin.
Burning stablecoins is an effective way to maintain stability and balance supply, creating long-term trust in the cryptocurrency ecosystem.
Quoted from the cryptocurrency market analysis report, 2024
What is the impact of USDC burning on the cryptocurrency market?
The action of burning 50 million USDC reduces the circulating supply, which could slightly increase the value of USDC if demand remains unchanged. This helps maintain the stability of the stablecoin in the context of a volatile cryptocurrency market.
Additionally, adjusting supply in this way helps prevent inflation risks or excess coins that negatively affect transactions and DeFi services integrated with USDC.
Are there any limitations and risks in the coin burning process?
Although coin burning is an effective supply control measure, it can also cause temporary liquidity fluctuations in the market. Investors need to closely monitor On-chain transactions to predict price trends and manage risks accordingly.
Especially during periods of high volatility, a sudden large amount of burned coins can change the supply-demand balance in the cryptocurrency market.
Frequently Asked Questions
Does burning 50 million USDC affect the price of USDC in the market?
Reducing supply through coin burning can contribute to stabilizing or slightly increasing the price of USDC if demand is maintained, thereby protecting the stability of the stablecoin.
On which network does the USDC burning occur?
The burning activity of 50 million USDC is performed on the Ethereum network to ensure transparency and record on the Blockchain.
Who monitors and verifies these coin burning transactions?
On-chain monitoring organizations, such as Whale Alert, track and publish the time and quantity of coins burned to ensure transparency.
Is coin burning common in other stablecoins?
This is a fairly common measure to control supply and maintain the stable value of stablecoins in the cryptocurrency market.
Can coin burning completely prevent cryptocurrency inflation?
Coin burning is an effective tool but cannot completely eliminate inflation risks due to various market factors.
Source: https://tintucbitcoin.com/usdc-treasury-huy-50-trieu-usdc/
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