CapitalNotes on Nostr: 🏦 The Silicon Valley Bank collapse collapse has forced USDC to break its peg to ...
🏦 The Silicon Valley Bank collapse collapse has forced USDC to break its peg to the dollar.
USDC is currently trading at over a 4% discount to the dollar. See the attached chart.
Some of the cash backing USDC was held in Silicon Valley, only $250K is covered by the FDIC, and therefore USDC faces losses on its reserve holdings. At this point, it's unknown if USDC still has $1 in liquid assets supporting the value of every $1 in issued USDC.
Once confidence is lost it's almost impossible to win it back.
This ought to be interesting. 🍿👀
#USDC #USD #dollar #SVB #siliconvalley #SiliconValleyBank #bank #Fed #banking #crypto #stablecoin #cryptocurrency #FDIC #banks #silvergate #Tether #USDT #trading
https://pbs.twimg.com/media/Fq-ciM_XwAEXo4j?format=jpg
USDC is currently trading at over a 4% discount to the dollar. See the attached chart.
Some of the cash backing USDC was held in Silicon Valley, only $250K is covered by the FDIC, and therefore USDC faces losses on its reserve holdings. At this point, it's unknown if USDC still has $1 in liquid assets supporting the value of every $1 in issued USDC.
Once confidence is lost it's almost impossible to win it back.
This ought to be interesting. 🍿👀
#USDC #USD #dollar #SVB #siliconvalley #SiliconValleyBank #bank #Fed #banking #crypto #stablecoin #cryptocurrency #FDIC #banks #silvergate #Tether #USDT #trading
https://pbs.twimg.com/media/Fq-ciM_XwAEXo4j?format=jpg