Unable to load image
Reported by:

USDC unpegging, might go bust

https://coinmarketcap.com/currencies/usd-coin

https://archived.moe/biz/catalog

Currently 88 cents to the dollar.

72
Jump in the discussion.

No email address required.

How does USDC work? Is it supposed to be redeemable for cash from a company, or is it a perpetual motion thing like terra was?

Jump in the discussion.

No email address required.

nobody knows :tayshrug:

Jump in the discussion.

No email address required.

Ok, their website claims their coins are redeemable for cash and fully backed by cash and short-term treasury bonds. However if this were actually the case, arbitrage would be dragging the price back up to $1 so clearly their redemption system has already failed or it takes too long to use and there is widespread fear it will fail in the meantime.

edit: Oh. They had all their cash in Silicon Valley Bank. Now I understand.

Jump in the discussion.

No email address required.

edit: Oh. They had all their cash in Silicon Valley Bank. Now I understand.

:#marseylaughpoundfist:

Jump in the discussion.

No email address required.

Circle (USDC's issuer) kept $3.3b in Silicon Valley Bank, which is around 8-10% of all of the assets that supposedly back the $40b or so they've issued in USDC tokens. That being said, the panic is being caused by Circle's suspension of withdrawals/conversions, major exchanges banning selling and decentralised exchange pools being drained.

Jump in the discussion.

No email address required.

wasn't it the whole point of crypto to not be sanctionable by banks

Jump in the discussion.

No email address required.

There's a rift between the lolbertarians and venture capitalist types on the direction of crypto. The former wanting to keep it the wild west where they can do whatever they want (though strangely those types are quite quiet when major projects collapse) while the latter want to be legitimised by regulation. The collapse of FTX was partly driven by this feud as SBF was pushing for more regulation (influenced by him and people allied to him) whereas CZ was and continues to be more of the "laws are suggestions" school of thought.

Jump in the discussion.

No email address required.

>buy decentralized coin

>look inside

>it's centralized

Jump in the discussion.

No email address required.

Based CZ, :marseychingchongsupremacy:

Jump in the discussion.

No email address required.

Thank god Sammy boy showed everyone that regulations are just a metaphorical cuck shed

Jump in the discussion.

No email address required.

people lie :marseysob:

Jump in the discussion.

No email address required.

I see, thanks

Jump in the discussion.

No email address required.

$3.3b in Silicon Valley Bank, which is around 8-10% of all of the assets that supposedly back the $40b

Emphasis on "supposedly", we know from tether that most of these companies have absolutely no issue with lying about their reserves.

Jump in the discussion.

No email address required.

>create crypto because of gfc and you don't trust banks

>Majority of assets tied to different banks

Cryptobros are truly something

Jump in the discussion.

No email address required.

"yet you participate in society" level banter

Jump in the discussion.

No email address required.

This is more like the "anti-gay politician pictured in a gay orgy" level banter

Jump in the discussion.

No email address required.

Is it supposed to be redeemable for cash :marseyluckycat: from a company

yeah

Jump in the discussion.

No email address required.

How does USDC work?

sounds like it doesn't work :marseysmug2:

Jump in the discussion.

No email address required.

Link copied to clipboard
Action successful!
Error, please refresh the page and try again.