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USDC Treasury Burn 200 Million Tokens

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According to the report, Whale Alert data showed that at 11:00 Beijing time today, USDC Treasury cast 200000000 USDCs and then transferred them to Coinbase. Af…

USDC Treasury Burn 200 Million Tokens

According to the report, Whale Alert data showed that at 11:00 Beijing time today, USDC Treasury cast 200000000 USDCs and then transferred them to Coinbase. After that, USDC Treasury destroyed 200000000 USDCs.

USDC Treasury founds 200 million USDC transferred to Coinbase

Analysis based on this information:


The report stated that USDC Treasury has burned 200 million USDC tokens. According to Whale Alert data, at 11:00 Beijing time, the USDC Treasury cast 200,000,000 USDCs and transferred them to Coinbase, after which it destroyed them.

USD Coin (USDC) is a stablecoin developed by CENTRE Consortium, a collaboration between Circle and Coinbase. It is pegged to the U.S. dollar with a 1:1 ratio and is designed to facilitate cryptocurrency transactions on various exchanges. The USDC Treasury is responsible for issuing new tokens and maintaining the reserve needed to back the circulating supply. By destroying the tokens, the USDC Treasury reduced the supply of USDC in circulation, increasing its value in the market.

The burning process involves removing the tokens from the cryptocurrency supply permanently by sending them to an unspendable address or a smart contract without a private key. This action, in theory, should reduce the inflation of the cryptocurrency and create scarcity, making it more valuable to the market.

The reason behind the token burn is unclear; it could be an attempt to manipulate the market, maintain the stability of the USDC, or comply with legal requirements. However, it reflects the centralized nature of the USDC, where a few entities have control over the supply.

Coinbase, on the other hand, is one of the largest cryptocurrency exchanges in the world, listing various digital assets and offering trading, custody, and other services. By receiving 200 million USDC tokens from the USDC Treasury, Coinbase could offer liquidity to its customers, enable them to trade USDC for other cryptocurrencies, or use it as a hedging asset.

In conclusion, the USDC Treasury’s decision to burn 200 million tokens and transfer them to Coinbase are interesting moves with significant implications for the cryptocurrency market. It highlights the centralization and control of digital assets, the concept of stablecoins, and the role of cryptocurrency exchanges.

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