On-chain investigator ZachXBT has made serious allegations regarding the potential misuse of USD Coin (USDC) by North Korea. He also touched upon Ripple's new stablecoin, RLUSD.
Accusations Against Circle and Their Consequences
ZachXBT claims that millions of dollars have been funneled through USD Coin with little intervention from the issuer. He accused Circle of turning a blind eye, describing it as 'a crime super cycle where no one cares.' According to him, USDC is widely used by North Korean IT workers to receive payments, with recent related transactions reaching considerable amounts.
Criticism of Ripple and RLUSD
ZachXBT also commented on Ripple's activity, stating he trusts RLUSD infinitely less than USDC and other stablecoins like Paxos and Tether. He asserted that Ripple has a history of 'misrepresenting paid partnerships,' which casts doubt on its user base. One of his quotes states that unlike Circle and Tether, Ripple lacks organic users.
Stablecoin Market Analysis
The stablecoin market continues to surge, exceeding a total capitalization of $263 billion. Tether's USDT leads the tally with a market cap of over $157 billion, while USD Coin ranks second with a capitalization of more than $61 billion. Ripple's RLUSD currently holds a market cap of about $455 million, which is significantly lower than the leaders.
The discussions surrounding the use of USD Coin by North Korean operators and competition in the stablecoin market pose serious challenges for both Circle and Ripple. These events could impact the future dynamics of regulation and trust in digital assets.
