No more USDC minting on Tron Network

In the Crypto market, we can see more demand for stable points because of various reasons. We see people accumulating more stablecoins because there are certain protocols where a good APR can be generated just by holding these stable points. This is also helpful when we want to increase the crypto holding by grabbing the opportunity when the price is high. I mean to say we can sell off the crypto in a stable coin pair and buy back when the price is low. In this scenario, stablecoins are very helpful because these coins are backed by dollar value and we expect that the value will not fluctuate much.

There are multiple stablecoins but some of them are quite popular because of their higher market cap. USDT stablecoin is on top and it is managed by Tether. USDC is the next one which is also a coin that is on demand and this stable point is managed by a company called Circle. These stablecoins are available on different networks which is good for us because we can make the transaction at a lower transaction fee. For example, if a transaction is initiated on BSC then the transaction fee is going to be 2 less as compared to the ERC-20 network which is built on Ethereum. Tron is also one of the networks where many stable coins are available including usdt and usdc etc.

Circle to stop minting USDC on Tron

Circle has announced that they are going to stop the minting of USDC coins on the TRON network. They have made the official announcement however they have not shared the region behind it and people are guessing the region which could be some unfair practices followed by the Tron founder and because of that people are not relying more on Tron.

Twitter link

As per the company, they will not mint any new USDC on the Tron blockchain however they will continue to provide support for the next year so that people do not face any problems. This way they are also trying to make this transition smooth and hassle-free for the community which I think is a good move by the company and in between people would have enough time to take the required action. There is no impact on the current holding for USDC on the Tron network however they are recommending the people move out of their usdc from Tron to another network. Tron is one of the chains where transaction fees are very low and probably because of this reason, many projects have chosen this chain including some stablecoins.

There has been no update from the Tron network officially about it and they did not mention anything about this transition that is going to happen for usdc. Circle as a company is trying to go public and they have filed it already and it is assumed that they do not want to get in trouble in the US because of any unfair practice followed by the TRON network. The company is following the proactive approach to avoid any issue on its path to becoming a public company and this is why this action is initiated however there is no confirmation on this statement so far and this is just an assumption from the community side. If you are holding usdc on Tron Network, then you don't need to worry about it since you have enough time to make the transfer or whatever action you are planning to take since the circle is going to provide support for the entire year.

I think that now it is time for more decentralised stablecoins to be in a place where there is no company involved to manage the coin and no such issues are expected to happen. We have a few already but they are not so popular and even HBD is one of the stablecoin on the hive network but very few people outside high use this coin and that is why I think more promotion is needed to bring attention to HBD. HBD has proven its existence and it has been paying an APR of 20% continuously for many years and I don't think there is any other option to pay an APR like this consistently.

Thank you

Posted Using InLeo Alpha