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- This week a historical move was taken by a US dollar-backed stable coin USDC which has blacklisted one account.
- This is the very first time when CENTRE blacklisted an Ethereum address holding 100,000 USDC stable coins.
- Eric opined that it is a well-known fact that USDC will be blacklisted at some point.
This week a historical move was taken by a US dollar-backed stablecoin USDC which has blacklisted one account. The blacklisted address will no more receive or send USDC funds to other addresses. However, reports find that the blacklisted address may be linked with a theft.
Ethereum supporters raised their voice on Twitter
Pertaining to this issue, many Ethereum advocates started buzzing on Twitter. Eric Conner, a popular Ethereum proponent recently tweeted that the risk of just holding USDC is very different.
Risk of just holding USDC is very different than being involved as an LP or something in a pool that involves a centralized stablecoin.
Risk is still much higher in USDT though.
— eric.eth (@econoar) July 9, 2020
When reserve dollars deposited on the US bank a similar amount of USDC tokens minted on the Ethereum Blockchain. However, CENTRE regulates the whole operation. This is the same company that runs a cryptocurrency exchange known as Circle in the past.
Eric opined that it is a well-known fact that USDC will be blacklisted at some point. According to him, this issue is intensely rooted in many DeFi protocols that are potential matter than the existing USDC blacklisted issue.
USDC is Good for Small Investors, But Not for Big Players
Further, Eric warned the users to hedge their risk accordingly. A user responded to Eric’s tweet that USDC is a good stablecoin for small investors. But, for large market players and decentralized finance, it is very bad.
This is the very first time when CENTRE blacklisted an Ethereum address holding 100,000 USDC stablecoins. The entire crypto community is roaring. However, USDC was never censor-resistant, but this fact has now been made more clear. This incidence has created more possibilities in the market that anything can happen.
Last week, USDC has broken the $1 Billion market capitalization becoming the second-largest stablecoin after Tether.
