What happening with USDC? | Bitcointalksearch.org

larry_vw_1955

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Quote from: Rasa nanas on March 13, 2023, 10:55:52 PM

I don't know for sure why the price of USDC almost fell to $0.9...

I do, it's because a bank they had some of their greenbacks in failed. So the FDIC insurance only covers like $250,000. The other couple billion was not insured. Shocked

so that's money down the drain they'll never get it back. maybe taxpayers can pickup the bill. they always do.

Rasa nanas

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I don't know for sure why the price of USDC almost fell to $0.9, it's clear that after the UST incident many people were afraid that it would happen again. after the UST incident the team from USDC should be able to read the public's concerns because USDC is one of the most popular stable coins, and if something bad happens to USDC it will definitely have a big impact on the crypto market.

bitkanu

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It's recovering now, im just hoping that it will never collapse, since it might trigger chain of events that is bankruptcy of many projects.
I'd say many projects including individual shouldn't be too much reliant in stablecoin, it's just really vulnerable against massive collapse, they should spread their portfolio more towards bitcoin and ethereum.

larry_vw_1955

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Quote from: Hispo on March 13, 2023, 12:40:33 PM

I would like to inform you that, actually DAI (which is a stablecoin) was 100% backed by Ethereum for years, before it moved onto a multi-collateral backing.

yeah at this point, it seems like a safer thing than having your stablecoin backed up by some bank in the usa that could fail and take your value with it. i guess that's a failure point no one expected could happen but now we can see it very clearly.

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Quote from: larry_vw_1955 on March 13, 2023, 12:16:42 AM

Quote from: Hispo on March 12, 2023, 10:03:27 PM

Fortunately, it seems both USDC and DAI have almost recovered their peg to the USA dollar, otherwise the ecosystems which depend on both coins stability would be in huge problems. I hope the guys at MakerDao learn from this event and get swap most of their USDC and use Ethereum as over-collateral for DAI.

imagine if usdc said they were backing it up using ethereum. Shocked

that's kind of like cheating right? you can't backup something pegged to the us dollar with some fluctuating cryptocurrency. not really.

I would like to inform you that, actually DAI (which is a stablecoin) was 100% backed by Ethereum for years, before it moved onto a multi-collateral backing.

It is called over-collateral. What they do is to ask you a 150% of collateral to give you 100% of the value of it in DAI, so if the market fluctuations won't affect the peg to the USD.

If the price decreases under 1$, there are over 50% of wealth, which is used to held the value.
If the price increases over 1$, the person which deposited the Ether is given the option to mint more DAI from their collateral.

It was a very clever system, imo.

jossiel

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Quote from: tvplus006 on March 12, 2023, 06:47:33 PM

Quote from: jossiel on March 12, 2023, 05:34:44 PM

...there's some positive news that's been released about SVB, Silvergate, etc. and that might be the reason for the market's up today.

After the Federal Reserve Board announced that "make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors" - https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm, the cryptocurrency market began to move up. So we can assume that the value of USDC will be restored already on Monday.

Yeah, it's again back to $0.99 so that's like the usual price of a stablecoin ranging with the difference of an actual $1 to $0.99 and we can say that they're back and normal.

Quote from: wxa7115 on March 13, 2023, 02:39:18 AM

So if the owners of stable coins are relying on financial institutions to safeguard their funds then sooner or later this will happen again, and this will erode the confidence investors have on stable coins even further.

Well, stablecoin owners have nowhere and no other thing to rely on but the providers of those issued coins. And that's why they've got no choice and whatever happens to the issuer or company that backs it, they can do nothing.

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Quote from: Ultegra134 on March 11, 2023, 06:38:27 AM

Quote from: jossiel on March 11, 2023, 05:29:07 AM

Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

Yes, There is no comparison between UST and the USDC. Basically one of the reasons for the collapse of Silicon Valley banks in the US could be the reduction of the peg of this scalable coin. USDC stablecoin is currently the second-largest stablecoin by market cap. It is currently trading at $0.986463. But this kind of situation is not new in stable coins. Gradually it is returning to normal levels again.

wxa7115

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Quote from: el kaka22 on March 12, 2023, 02:23:59 PM

I do not know how much this silvergate issue really hurt USDC or not. I understand that circle lost some huge amounts there, and that is why it's down right now, but does it really mean that they had no reserves at all? Maybe they still have enough for 1 to 1 ratio and this was just excess amount they had?

I really do not know, but if it is true that they lost peoples money in this bankruptcy then we are all in trouble with all the other coins as well. They might as well be gone too, USDT or anything else too, because even if they didn't had money in silvergate, they have it somewhere else and it could be gone just like this one day and we would be in trouble.

It is going to hurt USDC on the long run, even if it seems they have solved the crisis for now it is not as if this is going to be the last time that yet another bank goes bankrupt, and if anything we must expect this to happen more often during the next years.

So if the owners of stable coins are relying on financial institutions to safeguard their funds then sooner or later this will happen again, and this will erode the confidence investors have on stable coins even further.

larry_vw_1955

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Quote from: Hispo on March 12, 2023, 10:03:27 PM

Fortunately, it seems both USDC and DAI have almost recovered their peg to the USA dollar, otherwise the ecosystems which depend on both coins stability would be in huge problems. I hope the guys at MakerDao learn from this event and get swap most of their USDC and use Ethereum as over-collateral for DAI.

imagine if usdc said they were backing it up using ethereum. Shocked

that's kind of like cheating right? you can't backup something pegged to the us dollar with some fluctuating cryptocurrency. not really.

posi

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Quote from: el kaka22 on March 12, 2023, 02:23:59 PM

I do not know how much this silvergate issue really hurt USDC or not. I understand that circle lost some huge amounts there, and that is why it's down right now, but does it really mean that they had no reserves at all? Maybe they still have enough for 1 to 1 ratio and this was just excess amount they had?

I really do not know, but if it is true that they lost peoples money in this bankruptcy then we are all in trouble with all the other coins as well. They might as well be gone too, USDT or anything else too, because even if they didn't had money in silvergate, they have it somewhere else and it could be gone just like this one day and we would be in trouble.

Nothing is absolutely safe, once invested, we should have a plan for these risks. Not only USDT, but even if you hold bitcoin, it only assures you that the asset remains in your hands, not your asset value. In previous cycles of inflation and economic crisis, there have also been bank and corporate failures, so it is not surprising that it repeats itself. I think that's just the beginning, and there will be much worse this year, the economic crisis has not gone away, and it threatens us even more.

Hispo

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The dumbest thing about this situation is the fact that MakerDAO advertises DAI as a decentralized issued stablecoin and yet the most of the backing for DAI is made through the locking of USDC, it is absurd. Roll Eyes

Fortunately, it seems both USDC and DAI have almost recovered their peg to the USA dollar, otherwise the ecosystems which depend on both coins stability would be in huge problems. I hope the guys at MakerDao learn from this event and get swap most of their USDC and use Ethereum as over-collateral for DAI.

that would likely need the deployment of a new smarth contract, though.

larry_vw_1955

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Quote from: el kaka22 on March 12, 2023, 02:23:59 PM

I really do not know, but if it is true that they lost peoples money in this bankruptcy then we are all in trouble with all the other coins as well. They might as well be gone too, USDT or anything else too, because even if they didn't had money in silvergate, they have it somewhere else and it could be gone just like this one day and we would be in trouble.

well yeah i mean anything that promises it will be worth a certain amount of fiat can't really be 100% trustable. bitcoin doesn't promise it will be worth anything that's how it gets around that loophole. you buy you hope you pray but if it goes to 0 that's just your bad luck. Shocked

plus usdc they can freeze your money so you can't use it on chain at all. so not the ideal thing...

tvplus006

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Quote from: jossiel on March 12, 2023, 05:34:44 PM

...there's some positive news that's been released about SVB, Silvergate, etc. and that might be the reason for the market's up today.

After the Federal Reserve Board announced that "make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors" - https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312a.htm, the cryptocurrency market began to move up. So we can assume that the value of USDC will be restored already on Monday.

jossiel

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Quote from: vv181 on March 11, 2023, 07:49:07 AM

Quote from: jossiel on March 11, 2023, 05:29:07 AM

Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

Circle does not have a $3.3B deposit in Silvergate, it is on another bank, SVB or Silicon Valley Bank. See this tweet from the official Circle account: https://twitter.com/circle/status/1634391505988206592.

Based on monthly the latest Jan 2023 attestation, Silvergate is one of another bank who Circle held the reserves. As we know, besides SVB which goes bust, Silvergate the bank is also closing down its business, but it will come with full repayments of the deposit.

Contratry to UST, I don't think it will have the same effect, the market got swayed down is certain, but the degree if USDC going collapses will be much significantly deeper, note that DAI is also affected.

I appreciate you for correcting me.

Based on the development that I'm seeing right now, it seems that USDC is starting to do better.

Quote from: Ultegra134 on March 11, 2023, 10:21:59 AM

Quote from: jossiel on March 11, 2023, 07:22:27 AM

~Snipped~

My main concern is that this collapse greatly affects the market. I don't mind the recent fall of Bitcoin; I'll receive more BTC through my signature campaign, and I'm happy about that, but FUD is going to spread all over cryptocurrencies again, which, as I said earlier, is putting a dent in how people perceive cryptocurrencies. Hopefully, I didn't have any USDC, only USDT and BUSD, and although I also believe (and hope) that it'll recover soon, I doubt that it's going to crash even further.

I also don't have these stablecoins and your concern is valid not just for your own sake but for the market. So far as for the wishes for the market's recover, I think that it's greatly recovering as of now and hopefully this keeps up.

Quote from: cryptoresearcher2 on March 11, 2023, 11:07:23 AM

most likely will not be ending the same way but 3.3 billion $ is not chump change, that's serious money to lose.
also might take years to come to a conclusion as the bank goes in to bankruptcy...ect

Yeah $3.3B is a lot but it seems that there's some positive news that's been released about SVB, Silvergate, etc. and that might be the reason for the market's up today.

nicolas1979

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

Yes, the price reduction is no longer relevant to the value of the USD. And that's the lowest price since USDC was launched, which is $ 0.877. It seems that before the price drop, there was an increase in the amount of trading volume. But the price that has become irrelevant to the USD has also happened to USDT with a value of $ 0.56, but this is an old occurrence, maybe the price is launching. But if the USDC drops suddenly at this time it certainly makes us worry. When USDC drops, the price of USDT increases.

el kaka22

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I do not know how much this silvergate issue really hurt USDC or not. I understand that circle lost some huge amounts there, and that is why it's down right now, but does it really mean that they had no reserves at all? Maybe they still have enough for 1 to 1 ratio and this was just excess amount they had?

I really do not know, but if it is true that they lost peoples money in this bankruptcy then we are all in trouble with all the other coins as well. They might as well be gone too, USDT or anything else too, because even if they didn't had money in silvergate, they have it somewhere else and it could be gone just like this one day and we would be in trouble.

tvplus006

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Quote from: hugeblack on March 12, 2023, 03:10:30 AM

Quote from: tvplus006 on March 11, 2023, 05:43:53 PM

The CEO Circle Jeremy Allaire tried to explain in detail on his Twitter what happened to USDC and and Silicon Valley Bank - https://twitter.com/jerallaire/status/1634649346535833601?s=20 And it looks like he managed to reassure investors, as the price increased to $0.978 Obviously, someone has made a very good profit on this Fud today.

Although his words seem logical, and I believe that they will return to the price of one dollar soon, but why did the price drop so sharply in such a short period?
This means that the liquidation of 600 million dollars will cause a price loss of 0.98, or at least 0.95, and therefore is FUD the reason for withdrawing the rest? Or is the exposure greater than that amount?
In general, we hope that tomorrow this story will end

A little math:
Circle has $3.3 billion blocked in SVB from Circulating Supply of $40.7 billion. Thus, 8.1% of Total Supply is blocked, which corresponds to the price of 0.919 USDC for 1 dollar. It is this price that is currently equitable, reflecting the ratio of reserves and Total Supply USDC.

gunhell16

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

If anything happened to the USDC, it is because there is a lot of FUD that is spreading in the cryptocurrency news, so other community investors are panicking about what is happening in the market.

But from what I can see, usdc can overcome that, I'm sure because it's not like ust, so if you have usdc, don't swap first, wait for the return to 1:1 rate, maybe usdc can solve that.

Gayong88

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Basically, USDC is a stable coin with fiat collateral, meaning that someone holds $1 USD as collateral and will mint and burn coins upon request. However, it turns out that $1 USDC isn't really worth $1. occurs when the price goes up, or down

When a stable coin is worth less than US Dollars, this is what is called "negative parity". This means that it is set to lose value. But how did this happen? One possible explanation is that someone took out multiple loans using USDC as collateral and the loans were not repaid. Another possibility is that there are more coins in circulation in people's wallets than US Dollars.

In other words, there may be more people investing in buying coins than actually circulating them themselves.

hugeblack

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Quote from: tvplus006 on March 11, 2023, 05:43:53 PM

The CEO Circle Jeremy Allaire tried to explain in detail on his Twitter what happened to USDC and and Silicon Valley Bank - https://twitter.com/jerallaire/status/1634649346535833601?s=20 And it looks like he managed to reassure investors, as the price increased to $0.978 Obviously, someone has made a very good profit on this Fud today.

Although his words seem logical, and I believe that they will return to the price of one dollar soon, but why did the price drop so sharply in such a short period?
This means that the liquidation of 600 million dollars will cause a price loss of 0.98, or at least 0.95, and therefore is FUD the reason for withdrawing the rest? Or is the exposure greater than that amount?
In general, we hope that tomorrow this story will end

mich

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Well I do not hodl enough USDC to panic but it is not a good thing happening. There is so much fear right now and FUD we do not know if another Stable coin will also lose the 1 dollar peg.
Some good news is Circle says it will cover any missing liquidity in Silicon Valley Bank using corporate funds. https://cointelegraph.com/news/circle-plans-to-cover-missing-liquidity-in-silicon-valley-bank-with-corporate-funds

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In his first public statement since the depegging of USDC from the dollar, Circle CEO Jeremy Allaire has reassured investors that the stablecoin can still be redeemed for dollars at a 1:1 ratio. The company update, which was also shared on Twitter, comes after over $6.3 billion was wiped from the second-largest stablecoin's market capitalization.

Quote

Tl;Dr: While USDC can be used 24/7/365 on chain, issuance and redemption is constrained by the working hours of the U.S. banking system.

USDC liquidity operations will resume as normal when banks open on Monday morning in the United States. As a practical matter, our teams are well prepared to handle significant volume, built on the strong liquidity and reserve assets discussed below.

As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar.

https://twitter.com/jerallaire/status/1634649886397267969

Jackl87

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

As others in this thread have already said, it all has to do with the current happenings around that Silicon Valley Bank. Circle has now officially confirmed, that 3,3 Billion $ out of their 40 Billion $ total reserves were kept at that bank and that bank is nor bankrupt. Obviously some people become nervous when they hear such news and in this case i even think it could be a proper reaction to be afraid. Then once the first people begin to sell of all their USDC at the same time the price goes down a little and this then triggers the people there were nervous but have not sold yet and they sell then too and this is kind of a vicious circle.

BitcoinPanther

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC de-pegged with USD because of the event of Silicon Valley Bank issue. It was said that "the depegging happened after Circle, the issuer of USDC, disclosed on Friday night that some $3.3 billion worth of the cash reserves that back USDC remain held at Silicon Valley Bank, which was shut down by California financial regulators this week after a bank run."[1]

It became worse when some crypto exchanges temporarily suspended USDC conversions[1], but as of this reply, USDC somehow recovered, and it was assume that USDC will be back to its normal operation by this Monday.

[1] https://decrypt.co/123211/usdc-stablecoin-depegs-90-cents-circle-exposure-silicon-valley-bank

tvplus006

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The CEO Circle Jeremy Allaire tried to explain in detail on his Twitter what happened to USDC and and Silicon Valley Bank - https://twitter.com/jerallaire/status/1634649346535833601?s=20 And it looks like he managed to reassure investors, as the price increased to $0.978 Obviously, someone has made a very good profit on this Fud today.

goaldigger

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Quote from: Oneandpure on March 11, 2023, 10:26:03 AM

Could be second time bad issues after dropping with stable coins from Luna network as USTC and right now faced problem with USDC after price dropping almost $0.92. There are not exact detail what happening with USDC and how possibility price drop drastically as stable coins, worry will USDC become the next USTC?

Panicking might also be the reason especially we already have bad experience from UST, but I read some news that the price drop because the failure of their partnered bank which holds a lot of USDC. Though it looks ok now and more stabilized, I think it can still result to a trust issues with the stablecoins. Honestly, I’m not holding any stablecoin now for the same purpose, better to convert into Bitcoin for now while they are still having problem.

crzy

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

It was a domino effect, with their partnership with the other projects which is currently having a problem. Worry no more because the currency price is already at $.96 which i think is already a good and might be back to be more stable in the coming days. I know the trauma of many because of what happened to UST, but I think the situation of USDC is quiet different, they are more organized compared to UST.

slashz9

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I think because there has been a lot of bad news saying that, then these things can happen and one of them happened to Silicon Valley Bank where they are rumored to have 25% of the total supply of USDC so it becomes a FUD for USDC.
but we can also see that 1$ is not always worth 1$, I believe that if half of the total supply of usdc is sold en masse then the value will drop below 0.5$.

Johnyz

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

Probably because of many issues with their other investments and the current movement of the whales, don't panic because USDC can survive this since there's no major issue against them aside from the liquidation news and as you can see its value started to recover after dropping that much. If I have funds right now, I will always take risk to buy USDC at such price, this is temporary and they can solve this one because we can't afford another stablecoin to ended up like UST.

hugeblack

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I'm going to take a gamble by transferring about $500 and exchanging it to USDC, and let's see if I can make an easy 8% profit or if it's a big loss for me.
As for what happened, it is because of the $3.3B deposit in Silvergate, and we hope that they have enough liquidity to reassure users, otherwise the effect will be closer to a domino.

DAI using USDC As a basic reserve, along with several reserves, so it is normal to know that the price has decreased for them.
Based on the list of markets, Kucoin has a lot of USDT pairs.

cryptoresearcher2

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Quote from: jossiel on March 11, 2023, 07:22:27 AM

Quote from: Ultegra134 on March 11, 2023, 06:38:27 AM

Quote from: jossiel on March 11, 2023, 05:29:07 AM

Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

I've said that it won't be ending the same as UST, what I'm telling is its collapse for now means a lot to the market.

I believe that USDC will still recover, it's far from the collapse of UST and we both agree with that. As long as Circle will remain committed to its production and development of USDC, many will still believe them that this just has to pass.

I like DAI and it didn't really looked when it fell to $0.93, it has gotten me some worry but I'd still trust it as it's still not that too deep. Who knows if by tomorrow they'll even fall below $0.8 but hopefully, not.

most likely will not be ending the same way but 3.3 billion $ is not chump change, that's serious money to lose.
also might take years to come to a conclusion as the bank goes in to bankruptcy...ect

MAAManda

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

Many have explained here about why the USDC depeg phenomenon could occur, at first I only believed in USDC because based on the underlying, those who have real USD assets to issue USDC, but with this incident, I don't know where else to trust, because like what we know is that USDT is not fully backed by real USD, meanwhile BUSD also had issues some time ago which had something to do with Paxos.

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USDC:because usdc works clear we know that it has a reserve in bank system and some of it is gone it's price affected from this
USDT:because we are not sure that bigots where they hold their reserve we wont know if 3b usd of them dissappears , so if that bitch goes it will be sudden.
UST: that bastards pegged this so called stablecoin to another altcoin and gave %20 interest, it went inevidable death spiral.
DAI: they are asset backed and some of their assets were usdc
usdc and dai were honest, at least on paper, others not.

Oneandpure

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Could be second time bad issues after dropping with stable coins from Luna network as USTC and right now faced problem with USDC after price dropping almost $0.92. There are not exact detail what happening with USDC and how possibility price drop drastically as stable coins, worry will USDC become the next USTC?

Nowadays, I am not trust any more with many kinds of stable coins except with USDT, there are many possibility with other stable coins network although with BUSD have potential drop one days later, keep saving your fund in trusted stable coins or better hold Bitcoin and Ethereum is more benefic than stable coin.

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Quote from: jossiel on March 11, 2023, 07:22:27 AM

~Snipped~

My main concern is that this collapse greatly affects the market. I don't mind the recent fall of Bitcoin; I'll receive more BTC through my signature campaign, and I'm happy about that, but FUD is going to spread all over cryptocurrencies again, which, as I said earlier, is putting a dent in how people perceive cryptocurrencies. Hopefully, I didn't have any USDC, only USDT and BUSD, and although I also believe (and hope) that it'll recover soon, I doubt that it's going to crash even further.

vv181

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Quote from: jossiel on March 11, 2023, 05:29:07 AM

Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

Circle does not have a $3.3B deposit in Silvergate, it is on another bank, SVB or Silicon Valley Bank. See this tweet from the official Circle account: https://twitter.com/circle/status/1634391505988206592.

Based on monthly the latest Jan 2023 attestation, Silvergate is one of another bank who Circle held the reserves. As we know, besides SVB which goes bust, Silvergate the bank is also closing down its business, but it will come with full repayments of the deposit.

Contratry to UST, I don't think it will have the same effect, the market got swayed down is certain, but the degree if USDC going collapses will be much significantly deeper, note that DAI is also affected.

jossiel

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Quote from: Ultegra134 on March 11, 2023, 06:38:27 AM

Quote from: jossiel on March 11, 2023, 05:29:07 AM

Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

I've said that it won't be ending the same as UST, what I'm telling is its collapse for now means a lot to the market.

I believe that USDC will still recover, it's far from the collapse of UST and we both agree with that. As long as Circle will remain committed to its production and development of USDC, many will still believe them that this just has to pass.

I like DAI and it didn't really looked when it fell to $0.93, it has gotten me some worry but I'd still trust it as it's still not that too deep. Who knows if by tomorrow they'll even fall below $0.8 but hopefully, not.

Ultegra134

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Quote from: jossiel on March 11, 2023, 05:29:07 AM

Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

jossiel

hero member

Activity: 2842

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

rhomelmabini

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No God or Kings, only BITCOIN.

Quote from: Cee2 on March 11, 2023, 04:17:01 AM

If USDC dies like UST

You should have known that the case with UST and USDC are totally different here. You think Coinbase or BlackRock won't be able to cover the loss here? I wouldn't be able to tell but it's telling me they can.
Edit: https://twitter.com/DefiIgnas/status/1634417367265734656?t=2-uPwIEAzez2eHvGnJLA5A&s=19

Quote from: Cee2 on March 11, 2023, 04:27:58 AM

Woah looks like it’s not just USDC but also DAI and USDD.

The case with DAI is explainable but I don't know the case with USDD depegging too, maybe just because from panic sellers.

Cee2

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Woah looks like it’s not just USDC but also DAI and USDD.

If three of the top 10 stablecoins go down in my opinion all current stablecoins will go down.

cryptoresearcher2

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Quote from: AllYourBitcoinRBelong2Us on March 11, 2023, 03:21:36 AM

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

circle just confirmed yesterday 3.3 billion of its reserves were in silicon valley bank that went bust

Cee2

copper member

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Stablecoins are privately issued.
Just because circle says it’s worth $1 doesn’t mean that the market sees it this way.
It will be interesting to see how this plays out. If USDC dies like UST I think the stablecoin market is finished in its current form.
If a super centralized Organisation with this much backing goes under honesty nobody stands a chance.
There is only one entity that can say $1 USD is worth $1USD and that’s the US government.

AllYourBitcoinRBelong2Us

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Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price? Huh

Topic: What happening with USDC? (Read 334 times)