April fools joke is acceptable but what’s not okay is when it disturbs a financial market. A lot has gone around here and there recently, and we have seen a lot of pump and dump in the crypto market. And one tweet yesterday that said that USDC is going to be accepted by the US government pushed its price upward. The price increased by 0.7%, which seems less, but that is quite a lot for a stable coin.
BREAKING NEWS: US @federalreserve and @USTreasury announce that US Government will adopt USDC as new Dollar Digital Currency standard, accelerating US role in global digital currency.
— Jeremy Allaire (@jerallaire) April 1, 2021
What is a stable coin?
As you can understand from the name, stable coins are cryptocurrencies that are made stable. They can be pegged to other cryptocurrencies, fiats, assets, and anything else. Most cryptocurrencies today are volatile and lack any form of stability. One moment they are up, and the next moment, you know, the price just fell. This means that it is not easy to use them as a medium of exchange in daily lives.
This is where stable coins come in, and them being very stable can be used easily in transactions. Many popular coins are pegged to the US dollar, like Tether, which is also among the top 5 cryptocurrencies. Then there are stable coins pegged to cryptocurrencies like DAI, which takes in Ethreum to back its value.
The April fools joke
Jeremy’s joke pushed the price of USDC up, and it was not particularly liked by the masses. Many who did understand it was a joke took it like that. But then many thought there should not be spread of misinformation in the name of pranks. I personally don’t have an opinion on this as I feel both sides are somewhat correct.
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Also Read: Investing in crypto? Here’s something new called TUBBYCOIN
