⚠️LATEST⚠️
CIRCLE ($USDC) shares plunge 16% after $OUSD announcement
▪️Circle's shares fell sharply after Open Standard launched OUSD, a stablecoin backed by more than 140 companies.
▪️Among those 140 companies are #Ripple, Stripe, Coinbase, Visa, Mastercard and BlackRock.
▪️Neither Circle, Tether, nor PayPal are on this list.
What is the key difference of OUSD?
📍Unlike USDC, which is a centralized stablecoin issued by Circle, where the company keeps all the yield generated by the reserves, OUSD automatically redistributes that yield among its holders and partners. USDC holders only maintain a 1:1 parity with the dollar and receive no interest.
📍For this reason Circle's shares are falling.
