Circle (USDC), which boasts itself as the second largest stablecoin issuer, has come out straight over its relationship with FTX and Almeda research. The crypto sector is facing unprecedented volatility after
The crypto sector witnessed the carnage on Wednesday through Binance’s massive announcement of acquiring the beleaguered exchange. The primary digital firms have come forward to cut out the ongoing FUD in the market.
Crypto Firms Clear Cloud On FTX
Circle (USDC), the world’s second-largest stablecoin issuer, has come out clean, and its CEO, Jeremy Allaire, has contended that a lot of FUD is accrued. However, it was quick to state that Circle is not exposed to the exchange and Alameda research.
It is interesting to note that SBF’s FTX has been a customer of Circle Payment APIs for One and a half years. The exchange provides card and ACH services for its users, while Circle’s beta payment uses FTX and other exchanges for Bitcoin/Ethereum Liquidity.
Circle further stated that Alameda was a client of Circle for many years. It was using the USDC service for creating and redeeming USDC.
In another statement, Brian Armstrong, CEO of Coinbase, has expressed remorse for people involved in the Binance and FTX fued. He cleared that Coinbase does not hold any material exposure to FTX. Brian also indicted risky business practices for the conflicts of interest between significant entities.
Crypto Market Sinks
Another crypto exchange, OKX, expressed concern over the present situation. However, Jay Star, CEO of OKX, reiterated that the current crisis would pass and the community would bounce back. He also mentioned that OKX has no debt exposure to FTX, FTT, or Alameda Research.
The Global Crypto market is seeing red, and the sector’s market cap has shrunk by more than 13% in recent times, precipitated by the recent Binance announcement. It has shrunk to stand at $853 billion.