USDC and LINK are listed on Zipmex!

What is USDC?
USDC is an alternative stablecoin to other USD backed cryptocurrencies like Tether (USDT) or TrueUSD (TUSD). It is pegged 1:1 to the USD, which means $1 of USD = 1 USDC token. At any given time, 1 USDC can be redeemed for 1 US dollar.

What is Chainlink (LINK)?
ChainLink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. It improves smart contract interconnectivity by granting smart contracts access to reliable data feeds, APIs, payments, and other resources. Chainlinks also create a marketplace/registry for data, specifically data needed to trigger smart contracts.

How is USDC different from USDT?
Tether (USDT) is issued by a different company called Tether Holdings, and is the largest stablecoin by both market cap and trading volume, while USDC is issued by Circle Ltd. and is the official stablecoin of Coinbase. Circle has a more friendly regulatory approach and has the required licensing to operate. It issues a publicly available monthly audit that allows buyers to verify that USD Coin (USDC) is fully backed by US Dollars in segregated bank accounts.

What are the risks of buying USDC?
As the token price is pegged to the dollar, the main risk of buying a stable coin is currency fluctuation. So if the dollar weakens against the local currency (for example, Thai Baht or Indonesian Rupiah), then the THB/IDR value of your USDC will decrease. But if the USD strengthens against the value of your local currency, the local currency value of your total USDC holdings will increase.

How can the value of a stablecoin like USDC be stable?
For every USDC that is issued, there is a corresponding US dollar held in a reserve bank account. Such reserves are maintained by independent custodians and are regularly audited for adherence to the necessary compliance. By tying the value of USDC to a stable fiat currency, the potential for speculation is dramatically reduced, resulting in a price stable asset.

What can I do with my USDC?
Apart from selling and trading it when prices increase – which doesn’t yield as high returns because of the stable value of the US dollar – a smart thing to do would be to put it in an interest-bearing account, like the one Zipmex offers, which gives you 10% annual interest on your USDC.