Both are stable coin intended to have value equel to a US dollar 💵.
#Write2Earn #USDt #USDc #CeFi #DeFi
1️⃣ USDC has low adoption and trading pairs.
2️⃣ USDC is back by reserve and regulated like fiat currencies by authorities.
3️⃣ USDC is subject to conventional risks because of centralization and single owner entity.
4️⃣ USDT is not backed by proven reserves and therefore higher risk (like other cryptocurrencies).
5️⃣ USDT is well established, while USDC is growing in popularity for its compliance and transparency.
Community trust is the everything if some coin losses it due to any issue it will doom!
What is the downside of USDC?
USDC, like other stablecoins, faces common drawbacks such as centralization risks due to its management by a single entity, Circle, and regulatory risks linked to the evolving financial regulation landscape. It also carries counterparty risks, relying on the trustworthiness of Circle and its banking partners. In addition, USDC is tied to the traditional financial system, inheriting its vulnerabilities, and is subject to smart contract risks inherent in blockchain technology. While offering stability, it lacks the high return potential of more volatile cryptocurrencies, presenting a limited use case primarily as a stable medium of exchange or store of value.
