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Will USDC lose its value if Coinbase goes bankrupt?

avatarHaahr SehestedNov 24, 2021 · 3 years ago3 answers

What would happen to the value of USDC if Coinbase, the issuer of USDC, were to go bankrupt?

Will USDC lose its value if Coinbase goes bankrupt?
USDC
Coinbase
Bankruptcy

3 answers

  • avatarNov 24, 2021 · 3 years ago
    If Coinbase were to go bankrupt, it would not directly affect the value of USDC. USDC is a stablecoin pegged to the value of the US dollar, and its value is maintained through a reserve of US dollars held by Coinbase. Even if Coinbase were to go bankrupt, the USDC tokens would still be backed by the US dollar reserve, ensuring their value remains stable.
  • avatarNov 24, 2021 · 3 years ago
    No, USDC would not lose its value if Coinbase goes bankrupt. USDC is an ERC-20 token backed by a reserve of US dollars held by Coinbase. Even if Coinbase were to go bankrupt, the USDC tokens would still be redeemable for US dollars at a 1:1 ratio. The value of USDC is not dependent on the financial health of Coinbase.
  • avatarNov 24, 2021 · 3 years ago
    As an expert in the cryptocurrency industry, I can assure you that USDC would not lose its value if Coinbase were to go bankrupt. USDC is a stablecoin that is backed by a reserve of US dollars held by Coinbase. Even in the event of bankruptcy, the USDC tokens would still be fully redeemable for US dollars, maintaining their value. However, it's always a good idea to diversify your holdings and not rely solely on one exchange or stablecoin.

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