The trader:Circle's Usdc Scheme Is On The Brink Of Collapse

Jun 30,2022
KingData News : The trader @CryptoInsider23 tweeted that Circle's USDC scheme is on the brink of collapse. Circle pays the higher rate of what Signature and Silvergate are normally making on cash deposit. This is 5% per year at current interest rates. This is why Circle is always losing money! Circle lost already 500M in Q1 2022 on track to lose 1.5B in total for 2022!!! The next part: USDC reserves are invested and recycled into Signet & SEN. Every dollar that gets deposited into Signature or Silvergate gets auto swapped into USDC and they can lend it out. Since they are banks, they can leverage their reserves and go fractional reserve. Circle also uses an offshore Bermuda company to provide a USDC lending facility to avoid US controls and disclosures. USDC is now lent to high-risk lenders. Customers of these loans include Genesis, BlockFi, Celsius, Galaxy, Alameda and 3AC.
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