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MakerDAO Co-Founder Rune Christensen To Sell $3.5bn Usdc Backed For Ethereum Increasing Depegging Risk On Dai

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  • Ethereum co-founder Vatalik Buterin criticized Rune Christensen’s plan of converting MakerDAO’s $3.5 billion into ETH.

Rune Christensen, the co-founder of MakerDAO, is planning to sell $3.5 billion in USDC for Ethereum. This action could ultimately lead to lowering the value of DAI stablecoin pegged by dollar price.  

Data of Daistats proclaims that Circle USDC stablecoins back Dai stablecoins with a ratio of 32.1 Percent, which is equal to $3.4billion. And it is one of the largest collateral assets backing DAI stablecoin.      

Christensen is willing to have a portion of that collateral” uprooted” from DeFi lender’s $10.8 billion crypto treasury. And he likes to convert these collaterals into Ethereum.        

Discord channel of MakerDAO quotes that Christensen is tense about the risk of contagion of the following week about approving crypto mixing service Tornado Cash. 

Christensen mentioned, “I have been doing more research into the consequences of the Tornado Cash sanction, and unfortunately it is a lot more serious than he first thought.” 

Continuing the statement, he added, “It is obviously suicide to ‘yolo’ it all, but the risk/reward of partial uprooting may be acceptable. The market may finally start to reward decentralization to the point where these risks are acceptable because USDC is no longer the no-brainer it used to be.”

According to relevant sources, The Coin Market Cap Maker Token registered a downtrend of 4% after the news came into the limelight, and the token’s price reached $1,068.   

While writing this article, the Maker token was trading at the price of $1,083.71, and in the last one, the token registered a severe downtrend of approximately 50%. 

On Aug. 8, Monday U.S Treasury Department Sanctioned Tornado Cash, alleging the privacy tool laundered more than $7 billion worth of crypto assets since 2019. The measures mean that all U.S citizens and entities are restricted from using Tornado Cash.  

DAI Stablecoin of MakerDAO centered its focus after the complete ban of Tornado Cash Wallet.   

On Twitter Ethereum co-founder Vatalik Buterin criticized Rune Christensen’s plan of converting MakerDAO’s $3.5 billion into ETH.

Steve Anderrson

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