| json_metadata | "{"app":"musing/1.1","appTags":["money"],"appCategory":"money","appTitle":"What is the difference between USDC and USDT?","appBody":"<p>USDC (US Dollar <strong>Coin</strong>) and USDT (US Dollar <strong>Tether</strong>) both have the same stated function: to act as a stable coin in relation to the United States Dollar. Therefore, if currency is easily able to flow into the system without restriction, then the price of USDC and USDT should both be at $1.00 each as that is their stated value. However, if there are restrictions put in place, theoretically you could expect to see values higher than $1.00, the difference being a premium for allowing access to the system.</p>\n<p>The differences lie mainly in who supports the coins. </p>\n<p><strong>USDC </strong>is a stable coin launched by a partnership between Circle (a peer-to-peer payments company) and Coinbase (a popular crypto exchange in the United States). It launched in October 2018 and is built on the Ethereum blockchain and is subjected to regular audits. The reason for the audits it to prove/demonstrate that there are actually US Dollars in their possession for each USDC that has been issued. </p>\n<p><strong>USDT </strong>is a stable token launched by Tether Limited to help facilitate trades. It launched in November 2017. In the year since its inception, Tether has come under a lot of fire from many critics for its record keeping. There have been many questions about how Tether was creating so many tokens (that were supposedly back by dollars) while having no active banking partner. There have also been no audits completed on the company. The auditing firm they had hired parted ways without completing an audit. In June of 2018 they had a law firm state that they had the reserves, but it appears they have yet to complete a full audit. </p>\n<p>The Tether situation has been complicated because critics have stated that Tether Ltd has been issuing more Tether than they have dollars. These additional Tethers are supposedly used to purchase more Bitcoin and thus drive down the price. </p>\n<p>While the price of USDC has remained stable since its launch, the price of Tether (USDT) has varied widely, sometimes even 10% from its peg. </p>\n<p><em>Ultimately it is up to each investor to determine which coin will work better for them. Do your own research. Also, never invest more than you can afford to lose. </em></p>\n<p>tl;dr <strong>USDC</strong> is the US Dollar Coin issued by Circle and Coinbase. <strong>USDT </strong>(Tether) is the US Dollar Tether. Both are \"stable coins\", but the price of Tether has not been stable. </p>","appDepth":2,"appParentPermlink":"fkv7fvecw","appParentAuthor":"ijoel","musingAppId":"aU2p3C3a8N","musingAppVersion":"1.1","musingPostType":"answer"}" |
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