$USDC USDC is a stablecoin backed by USD, but there are still risks. Although advertised as 'stable', USDC has lost its peg (deviated from the 1:1 exchange rate) during the collapse of Silicon Valley Bank in 2023, causing investor confusion. Additionally, Circle's centralized management makes USDC susceptible to control, freezing wallets at the request of the government or financial institutions. In the crypto world that values decentralization and financial freedom, USDC is increasingly resembling the traditional banking system – something many are trying to avoid.