11–20 of 204 posts
What they don't bring up. The peg is a lie, hit $0.87. https://www.cnbc.com/2023/03/11/stablecoin-usdc-breaks-dolla...
Obviously the market had some doubts about this today and then liquidity issues drove the price down. I'm somewhat surprised that it climbed back up this fast which means that the panic seems to be over (for the moment).
>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
Their 10B in cash was spread over 6 banks to diversify the bank risk.
They have plenty of higher risk investments in their treasury, but these ones were the safe ones intentionally put into banks with insurance. If the government protection wasn't there the investment would’t have been there in the first place
>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
After the fall of Terra, it's clear that stablecoins can only go down in value. There's also no FDIC to step in to take over the failing stablecoin. You're trusting USDC and by extension BlackRock to do the right thing here. If it's not a security than it's not regulated.
Terra was collateralized by crypto. USDT is collateralized by… something, maybe. Given that USDT always regained its peg regardless, the depeg of USDC seems like an overreaction.
What they don't bring up. The peg is a lie, hit $0.87. https://www.cnbc.com/2023/03/11/stablecoin-usdc-breaks-dolla...
>As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar.
>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
They deposited 3B with this bank for the specific purpose of it being a safe place. Their 10B in cash was spread over 6 banks to diversify the bank risk. They have plenty of higher risk investments in their treasury, but these ones were the safe ones intentionally put into banks with insurance. If the government protection wasn't there the investment would’t have been there in the first place
What they don't bring up. The peg is a lie, hit $0.87. https://www.cnbc.com/2023/03/11/stablecoin-usdc-breaks-dolla...
What they don't bring up. The peg is a lie, hit $0.87. https://www.cnbc.com/2023/03/11/stablecoin-usdc-breaks-dolla...
Earlier quoted context omitted.
They deposited 3B with this bank for the specific purpose of it being a safe place. Their 10B in cash was spread over 6 banks to diversify the bank risk. They have plenty of higher risk investments in their treasury, but these ones were the safe ones intentionally put into banks with insurance. If the government protection wasn't there the investment would’t have been there in the first place
But the insurance doesn't apply to the full amount.