Crypto Whales Are Selling This Altcoin! Here’s Why

Crypto prices continue to drop and there is no bottom in sight. Data shows that whales are intensifying sales on a cryptocurrency meanwhile.

Whales are moving away from this cryptocurrency

One crypto analyst argues that USDC, the second largest stablecoin, is in serious trouble. The entire crypto market experienced a sell-off as a result of the Fed’s hawkish stance. Analyst Geralt Davidson argues that Circle USDC is losing ground fast. Additionally, the USDC market cap has lost significant value. Worse still, it showed no signs of a random return. The second largest stablecoin by market cap is backed by Circle. Its market value is currently under $50 billion.

Why is USDC in danger?

Geralt Davidson highlights the steadily declining supply of USDC held by the top 1%. This highlights the fact that whales are selling USD Coins. According to Davidson, the choice of Tornado Cash was an oddity for the company. As you follow, the US Treasury Department’s Office of Foreign Assets Audit has penalized Tornado Cash for engaging in money laundering activities. All of Circle’s cryptocurrencies on Tornado Cash are currently suspended. Since Circle is the parent company of USDC, the situation directly concerns itself. Meanwhile, companies like Tether did not freeze USDT at Circle’s rather Tornado Cash addresses. Davidson argues that because of Circle’s action, people no longer believe in the company.

The trading volume of USDC on exchanges was quite close to the volume of USDT in February 2022. By October 10, 2022, some experts were speculating that USDC would overtake USDT as the leading stablecoin. The second largest stablecoin is currently not in a position to challenge USDT. USDT’s market cap is currently close to $68 billion, while that of USDC is $49.7 billion.

Recently, Binance has removed the USD Coin from its platform. It also dealt a significant blow to the cryptocurrency by stopping accepting deposits. Instead, the platform enabled users’ USD Coin to be converted to BUSD at a 1:1 ratio. WazirX, India’s largest cryptocurrency exchange, removed USDC from the list after Binance. The lack of trust in USDC could cause issues for the stablecoin as long as the Fed continues to support hawkish policies.

The company’s work towards CBDCs

Critics argue that USDC will support central bank digital currencies as USDC complies with Tornado Cash. For example, opinions are also made by Block Digital co-founder Santiago Velez. Furthermore, without the CBDC’s backing, the FDIC considers it impossible for the Federal Reserve and OCC to give USD Coin any competitive advantage.

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