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Sticky USDCs: A Look at the Immovable Funds

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It is reported that Conor, the business director of Coinbase, tweeted that it is noteworthy that a large part of USDCs are sticky and will not/cannot be redeem…

Sticky USDCs: A Look at the Immovable Funds

It is reported that Conor, the business director of Coinbase, tweeted that it is noteworthy that a large part of USDCs are sticky and will not/cannot be redeemed immediately. For example, USDC with US $8.1 million is in the blacklist wallet. 10 million USDC is likely to be lost forever, and more than 200 million USD has been locked in FTX assets for many years. Hundreds of millions of funds are locked in the bankruptcy property with slow flow (15 million for Blockfi and 463 million for Voyager). Hundreds of millions of funds are locked in the slow flowing DAO/fund. For example, 2.42 million of the Covid relief fund in India (the fund has no flow in more than 12 months). The 9-10-digit USDC in the financial wallet of centralized enterprises.

Business director of Coinbase: A large part of USDCs will not be redeemed immediately

Analysis based on this information:


Conor, the business director of Coinbase, recently tweeted about the noteworthy nature of USDCs being sticky and immovable funds. According to Conor, a large part of USDCs are unable to be redeemed immediately, and many of them have been locked up for years. For instance, an amount of US $8.1 million of USDC is found in the blacklist wallet, and it is unlikely that a total of 10 million USDC will be redeemed. Additionally, more than 200 million USD has been locked in FTX assets for years, with hundreds of millions of funds locked in bankruptcy properties that have slow flow. This includes 15 million in Blockfi and 463 million in Voyager, which have remained immovable for a lengthy period.

Moreover, hundreds of millions of funds have been locked up in the slow-moving DAO/fund, and 2.42 million of the Covid relief fund in India has not had any flow for over a year. Finally, large amounts of USDC have been found in the financial wallets of centralized enterprises.

USDCs are stablecoins that are widely used in the cryptocurrency industry due to their reliability and stability. However, Conor’s revelation poses a significant concern as it indicates that many USDC funds are not as liquid as people may assume. This lack of liquidity can lead to significant problems for investors as their funds may be tied up for extended periods, leading to loss of profits and potential investment opportunities.

In conclusion, the sticky USDC funds pose a significant challenge for investors, pointing to the need for liquidity in cryptocurrencies. The presence of immovable funds brings to the forefront the importance of assessing the liquidity of investments before making any investment decisions. It is vital for investors to conduct due diligence on investment options to avoid the risk of immovable funds.

In summary, USDC has been a popular choice for cryptocurrency investors due to its stability and reliability. However, Conor’s revelation sheds light on a significant issue where investors are not able to move their funds due to the sticky nature of USDCs. Therefore, investors need to consider the liquidity of investments and conduct due diligence to mitigate risks associated with immovable funds.

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