Topic: DAI and USDC depegged! - page 2. (Read 402 times)

Dangerous times have come.Many thought for a long time that these assets were not vulnerable, but this turned out not to be the case.The most important thing is that after all the fluctuations the price returned to its previous values, but now there is no confidence in these projects.

One fact that I am seeing after many years in this market is that some of the top stablecoins are experiencing similar problems. Recall the last incident involving BUSD.
Anyway, this is also a rather sensitive period; the signs of new projects and the sources of money participating in the market are gradually returning. Since the event from Terra, I keep stablecoins and should only plan DCA 5 months before.

This can be a big help especially on a very volatile marker but since last year, the collapse of UST makes a big realization to many that stablecoins are not safe at all. Many are starting to Hold Bitcoin instead of stablecoins, which i think is also ok. If there’s another depegged situation, most probably many will totally abandon stablecoins for good, that could lead into another market panic.

Stablecoins are only safe for a short period it seems, now I find it hard to keep money in stablecoins and leave it there, I wonder what will be the proper solution to this depegging issue because whether we like it or not, stablecoins are very useful for crypto investors and traders, I read some comments on Twitter, some are saying Stablecoins was never needed.

I guess stablecoin always have the risk of collapsing doesn't matter whether it's collateralized and algorithmic it's all the same, it's always the high risk lenders that causes the chain to break, even binance isn't trusting busd even though they are the one keeps promoting since then. goes to say that stablecoin only fit to be used for temporary tool for storing wealth and keeping it from inflation any longer holding would be risky to us.

Its still alarming to see such stablecoins to depegged, it looks like they are more vulnerable and not a safe coin to hold when there’s a market crash, they should be more stable though because its their purpose here in the market. Anyway, this will make the market more unpredictable and risky, hard to know if we those stablecoins are still safe or better to hold Bitcoin and just enjoy its volatility while holding.

If you are a person who prioritize safety, when those stable coins are stable again like now, you would take this chance to convert your stable coin to either Bitcoin or fiat currency.

I smell very risky to keep belief in stable coins at the moment because they can shady manage behind the scene or they just store their fiat currency in a bad bank like Silver gate, Silicon Valley bank, Credit Suite etc.

And FED has yet rescued those stable coins. They launched a cool down solution for troubling banks and problems have yet been solved entirely. The nightmare has yet ended and worst has yet come.

They've crashed, but it seems that now the peg is restored. So much for "collaterized stablecoins" that were often claimed to be a safer alternative to "algorithmic stablecoins". This tells us stablecoins are not 100% guaranteed to hold their peg for a long time. I was shocked to read DAI lost its peg, especially when it's decentralized. Only then, I've realized that MakerDAO had USD reserves on SVB just like Circle's USD Coin. It was a complete mess, but I'm glad everything got sorted out.

If the FED hasn't "rescued" SVB deposits, it would've been the end of both DAI and USDC for good. The issuers need a better strategy to prevent such catastrophe from repeating itself again. Hopefully, regulators will weigh on the industry to give a better sense of legitimacy to mainstream investors and traders alike. Who knows if Tether (USDT) would be the next stablecoin to lose its peg? Just my thoughts

Yes, it's back at it again and made a skyrocket gain today. The value and prices of those stablecoins went back again to their former although the gap is just $0.01 for it to be back exactly to $1 and that's the usual move of stablecoins.

Those that have sold didn't do their research about the backing of these stablecoins but who are we to blame them? For them, it's better to be safe than sorry but at least they should have monitored things in the market and the news that rotates around the two.

I reckon that an investor that's informed of the market that he's in, might miss some opportunities but won't panic in bad situations.

The main source of Bitcoin's fall was the collapse of Silicon Valley Bank and Silver Gate. Because of these two platforms the USDC coin is decelerating due to the peg just starting to decelerate. Due to which the candles on the BTC market and other platforms are turning red. And the Bitcoin market is now back to normal.

I never thought I’d see USDC/DAI price at this low. Things quite stable right now, and USDC/DAI market both are getting back to normal. However, common folks were making a lot of money through arbitrage profits by based on weekend hour FUD. Credit goes to those people panic sold their USDC and thought it would crash and burn like Luna/UST without having a proper understanding. So, It's necessary to educate themself first before making any quick decisions that may harm their financial stability.

We shouldn't need stablecoins to trade crypto if the platform provides trading services with USD fiat. The amount of USD circulating in a trading platform is measured based on the dollar deposit value from the bank. Likewise with other currency values. If something bad happens to a stable coin, of course this is a big blow for investors, as happened with Terra stable before.

Well, this wasn't new already. If you are here before and you are following the news around cryptos, you will be aware that the stable coin of Luna is the first one to collapse or depegged and then it followed by others. People are already warned about the possibility of the remaining stable coins that are still at the op of the list but maybe this time have finally arrived.

This is bad and I think this can cause another panic again and another dump in the overall market of cryptos. It will be okay if the impact is only applied slowly and not in an instant so that there is still a chance that the price can fight back and can recover to continue what it had started.

depended?

I've never been into spring in those pegged coins never trusted them.  Maybe it's because these types of things are inevitable.  Luna, these depegging, etc always made it feel scammish.  People throw a lot of trust in these projects and they continue to fail, rug, etc.  Bitcoin for me thanks.

I don't you haven't been reading about crypto much.  I mean I haven't been reading about it as much as I used to but I think I still have a grasp on things.  The thing is, Circle is holding some USD backing the USDC in some bank that went down so a lot of people who hold USDC have been dumping them for other stables, hence losing the peg.

And with DAI, most of DAI is backed by USDC.  Lol.

There's actually nothing safe in the market but only bitcoin. Although people might still say that it's not safe because of the volatility that it has in nature.
But with that, most traders are still keeping their profits in any stable coin that they're confident with. Such situations are giving us the idea that we should be proactive in the market because that's giving us the idea on what's happening and what could possibly happen with the projects that we invest in.
So sad to see this happen to these stable coins although that's part of the risk that even stable coins cannot skip these type of scenario. Just be sure that you're aware with all of these scenes and it can happen to other stablecoins.

Stable coins weren't always here. There used to be a time where people were only able to trade their crypto against the USD. (I mean the hard USD) Stable coins like Tether happened because the banks stopped doing business with Bitfinex. The main problem lies there.

Banks don't want to do any business with the crypto exhanges. Why do they do that? We need to fix this first.

Bitfinex couldn't fix it so they created an alternative to the USD, USDT.

Now everyone is doing the same thing and it is creating more problems than what it was supposed to fix. The space got bigger than it supposed to,  thanks to the tethers and the other stable coins because the issuers don't give a damn. They create more tokens at will whenever a systemic risk occurs. An exchange is losing liquidity? Is it going bankrupt? Quick, print more! More more more, it is never enough to feed the best completely. Once you begin the printing game there is no end to it.

The FED knows this the best and Bitfinex is just like FED except for one thing. The FED can print USD legally. Bitfinex cannot.

Even if they somehow manage to re-peg the USDC/USD pair, that is not going to fix the core problem of this business model.

Long story short, a correction in crypto is long overdue. Too many scammers around and they need to go away.

When you say avoid stablecoins, do you mean all the stablecoins and what is the alternative? Totally cashing out? Because if tether fails, every crypto fails with it. Right now those two stablecoins are slightly unpegged but every crypto out there is affected way more then dai or usdc so i don't see other cryptos as a good stablecoin alternative. USDT should hold, i am 99% sure of it.

Why artificially create problems with stablecoins? To encourage people to buy bitcoins, because bitcoin is the last thing that can turn into a cryptocurrency scam. Any Stablecoin has a team-owner, while bitcoin does not (an important advantage). Maybe soon, as a result of the problems with stabelcoin, we will see the price of bitcoin rise because of increased demand?

wouldn't have thought a stable coin could collapse almost simultaneously. this will have a slower impact on the growth of crypto which has started to improve but on the contrary is not good enough. i think a big conspiracy is being run by the rich to where to get a good start, for in the future ahead of the significant altcoin market