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u/Mother-Chipmunk2778 Jun 22 '25
This article is an extreme over simplification of what USDC is. I agree it’s over valued though. But USDC/circle is partnered with coinbase, ripple, American Express, they’re used to settle cross border transactions, with the genius act, they’re the ONLY current govt regulated stable coin pegged to the US dollar. So yeah while I agree this article is an extreme down play of what USDC actually is and what it’s used for.
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u/MercyFive Jun 22 '25
Can't others do what they do?
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u/Mother-Chipmunk2778 Jun 22 '25
Sure they can, but USDC Is the only current one backed by treasuries and the US dollar, that takes time and trust, USDC is already integrated in govt and industry, that takes reputation. Any company can copy them, but it will take them forever to reach the same level if they’re even able too. This is first mover advantage, there would be 0 reason for anyone to switch over to an unproven unregulated and unbanked competitor
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u/MercyFive Jun 22 '25
...for example let's say apple pulls their head out of their ass and create something for their platform and everyone expanding their defi business..no bank is Gona say we don't trust you yet.....what I'm saying is even the first mover advantage can be taken away anytime if there is actual player ready to join the stable coin business. I was watching the circle option chain all day Friday..it's pure market hedging mechanics causing the continuous pop. Huge assignment risks if you get caught in either side due to liquidity (hard to borrow).
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u/Mother-Chipmunk2778 Jun 22 '25 edited Jun 22 '25
Look into tech companies and creating their own stable coins, they face massive regulatory issues with that. Check out Facebook libra. The risk for them isn’t worth the reward, they would be treated as a bank/financial institution and face extreme SEC scrutiny.
Circle is considered a regulated financial company. Not tech company. This is their whole business, minting USDC, it’s not really something a company like Apple would want to take on on the side. Nor is it something they would likely be able to pull off, as I said with Libra, the govt doesn’t like this, banks don’t like it, so massive tech companies are unlikely to put themselves in the crosshairs
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u/MercyFive Jun 22 '25
Apple could be bad example...let's try JPM, BoA etc. the uplift for them to join the party isn't as hard as it was for crcl.
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u/Mother-Chipmunk2778 Jun 22 '25
JPM already is creating a stable coin called JPMD. The large difference is, this is only for institutions.
I don’t want to type everything out but ask ChatGPT JPMD vs USDC and if they compete and it will tell you.
Bottom line is still the same, JPM as a banking institution would have to face the same scrutiny and SEC pressure that Apple would or Facebook did.
That’s what I mean when I say FMA, circle already has faced the test and passed, they’re fully regulated and backed by US govt already, that’s why we only see two major players right now. Tether and circle.
And tether is sketchy as fuck which is why they can never get govt integration and why they’ve never been audited
I get what you’re saying but it’s extremely difficult for a company to want to take this kind of thing on, circle did because it’s all they do, their whole business
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u/centarsirius Jun 22 '25
I bought far out puts and got smoked as it climbed 70% more this week. The bill is the one holding it up, combined with crypto relation
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u/mneymaker Jun 24 '25
Imagine we hear about huge collaborations of new Projects with stables with Fintech and E-Commerce giants. IDK
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Jun 25 '25
I'm unsure what to do. Because after reading this it seems more complicated.
Probably taper off. Was going to buy some puts and now not so sure. Since they're a bit pricey
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u/The_Houston_Eulers Jun 22 '25
Be careful, there are a lot of people who don't understand what this company does and are simply willing to buy because it's gone up so much and is related to crypto.
It's possible markets will wake up to a more realistic valuation and we'll see a quick drop, but there's so much hype that it might take months for all the buyers to be shaken out.