Ninjastic
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Re: What happening with USDC?
by
cryptoresearcher2
on 11/03/2023, 15:07:23 UTC
Quote from: jossiel on Today at 11:22:27 AM
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Quote from: jossiel on Today at 09:29:07 AM
Quote from: AllYourBitcoinRBelong2Us on Today at 07:21:36 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