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Circle to End Support for USDC on the Tron Blockchain
02/21/2024

Circle to End Support for USDC on the Tron Blockchain

02/21/2024
4,5

Circle announced it will stop supporting USDC on the Tron network by February 2025, citing security concerns.

The largest issuer of stablecoins, Circle, is discontinuing support for USDC on the Tron network, the company announced on its social media channels. According to Circle, the team conducted a complex review with various business organizations and the compliance to come to this decision. Circle also added that the discontinuation of support will be phased out in stages and will cease completely by February 2025.

The company allows Circle Mint customers to migrate USDC to alternative blockchains until February 2025. Circle Mint's customers are large enterprises; other users are encouraged to move USDC to other networks as soon as possible.

Circle cited security and risk management concerns as the main reasons for discontinuing support. In its blog, the issuer pointed to conducting a comprehensive review of all networks to ensure they are suitable to support its stablecoin. This measure is part of an ongoing commitment they have to maintain the reliability, transparency, and security of the USDC.

Circle's ending of support for Tron comes after the blockchain company faced allegations of involvement in money laundering. Last year, the Campaign for Accountability wrote a letter to U.S. Senators Elizabeth Warren and Sherrod Brown, claiming that Circle was facilitating the financing of terrorist organizations, citing transfers to TRON as evidence.

In addition, the U.S. Securities and Exchange Commission filed a lawsuit against Tron founder, Justin Sun, accusing him of market manipulation.

As for USDC, network data shows USDC's dominance of the Ethereum network, where more than $22 billion of the total circulating supply has been placed. Tron holds a relatively modest share of $313 million of the total USDC market.

Circle's main rival, Tether, also decided to compete for dominance in the Ethereum market by issuing 1 billion USDT tokens on this network.

Referring back to Tron, it is worth noting that Circle's announcement did not negatively affect TRX pricing. Tron's price has been slowly climbing above the $0.120 resistance zone lately. The asset has added 8% in price over the past seven days. Not long ago, TRX price hit a new multi-week high at $0.140.

Source and Copyright © TradingView

At the time of writing, TRX was trading at $0.1397. From the technical point of view, the nearest resistance is close to the level of $0.1400. An important level is $0.1420, above which the price may continue its rapid growth to the resistance levels of $0.1650, $0.1720 and $0.180.

On the negative side, TRX could fall to support levels of $0.1380, $0.1350 and $0.1320.

This is not a 100 percent statement. The cryptocurrency market is very volatile. Investors should exercise caution and remember the importance of doing their own research.


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The materials found on the Cryptonica website shall not be taken as individual investment recommendations. The financial instruments or operations mentioned therein may not align with your investment profile or objectives. We assume no responsibility for any missing facts or inaccurate information in the texts. Cryptocurrencies are financial assets with high risk and volatility. Therefore, it is crucial that you conduct your own research on financial instruments and make independent decisions. Before engaging in any actions related to cryptocurrency, you shall study, understand, and comply with the laws applicable in your region and country.

Justin Sun


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