Jeremy Allaire, co-founder and CEO of Circle, said USD Coin (CRYPTO: USDC) stablecoin is unaffected by the crypto exchange FTX’s native token (CRYPTO: FTT) crisis.
What Happened: Allaire took to Twitter to share his thoughts on the Binance–FTX fiasco, referring to the FTX bankruptcy as the “Lehman Brothers” moment for crypto.
Lehman’s collapse was a major contributor to the domino effect of multiple financial disasters in 2007 that eventually become one of the largest global financial disasters.
“Finally, as someone who’s been involved in this industry for 10 years, it is disappointing that a technology that was spawned in reaction to the Lehman Bros. moment of 2008 has given rise to its own version of the same,” he tweeted.
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FTT has lost 80% since Binance CEO Changpeng Zhao said his exchange would sell its entire FTT holdings, sending shockwaves through cryptocurrency markets.
Allaire urged the industry to proceed beyond speculation into the “utility value phase,” which requires better transparency.
“The good news is that the foundations that have been built with crypto infrastructure and public chains give us the building blocks to now re-make financial services with radically more transparency than we’ve ever known,” he added.
Circle has been regulated in many countries since 2014, and USDC is backed by government bonds and cash. He emphasized that USDC has “detailed transparency” and is trusted by major asset managers and custodians around the world.
Price Action: FTT is trading at $5.20, down 71.43% in the last 24 hours, according to data from Benzinga Pro.
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Photo via Coindesk on Flickr
