Usdc vs. usdt

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USDC versus USDT (Tether), both stable coins worth one dollar, what is the difference? The major difference is what is backing these stable coins? For many years, most people did not believe that Tether was fully backed by a dollar but it was hard for us to know the truth because Tether was not transparent and they were not open to audits but recently, what is backing? Tether has been confirmed and tether's first reserve breakdown is showing the token is 49% back by unspecified commercial paper and the reason that Tether is now showing their reserves is to remain compliant with a settlement with the New York attorney general, which they paid 18.5 million dollars to settle. So tether provided a breakdown of their reserves and this is what the chart looks like

75% Cash and Cash Equivalents the rest is Secured Loans, Corporate Bonds and Other Investments. But if we go even deeper into the Cash and Cash Equivalents, what does this really mean? Well according to Tether only 3.87% is actually in cash the rest is Commercial Paper, Fiduciary Deposits, Reverse Repo Notes and Treasury Bills.

For those of you reading this article, saying Tether fudd, you're in denial. I'm not even making up these statistics, this is coming directly from Thether, so this is a Tether fudd this is exactly the information that they are providing. So when it comes to Tether's backing, it is very messy and I don't think anyone is shocked by this, no one really believed it was backed fully by a dollar and today no one is surprised by it.

When it comes to USDC Stablecoin, what is the difference? USDC has been fully transparent, compliant and open to audit since its inception and they are regularly audited by Grant Thornton LLP, and for those of you that are unaware, Grant Thornton LLP is a top five auditing firm in the world, and if we look at the most recent audit from this firm it shows right here

So USDC is fully transparent and they are fully back, but there is something I need to mention, if we look at the reports they're supposed to be done monthly but the last report was in April of 2021 and right now we're in July, where is May, where is June and this is a report from May of 2021.

The reason that I'm bringing this up, is to show you that although USDC is more compliant and I guess safer than USDT, in the space of crypto no one is immune to foul play, I do trust that USDC is back but a good lesson for us in the crypto space is never put a hundred percent trust into anyone even in this case, USDC. As we can see they still are missing two months of reports, so what does this mean for you? What's the difference for you as an investor or a trader? The difference is that you probably don't want to hold on to Tether, maybe you want to use it to move crypto from one exchange to another or trade crypto or buy crypto, but in terms of holding on to Tether it doesn't really make sense to me if you have USDC as an option. For example, I like to earn interest on my stablecoins, if I have the option of holding USDC for a long term to earn interest, why would I choose Tether? Again this isn't fud I'm showing you exactly what is going on and I even called out COINBASE here, USDC is supposedly backed 100%, you know, one to one but we don't have any reports over the last two months.

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