>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
That’s a cheap shot, does roku deserve a 470+m haircut?
An Update on USDC and Silicon Valley Bank
21–30 of 204 posts
Re: An Update on USDC and Silicon Valley Bank
#22After 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 no stablecoin and it has been constantly pointed out that it wasn't. USDC is backed 1 USDC for 1 USD. What you're actually seeing here is that the traditional finance system has lead to a crash in crypto. That's almost refreshing. Usually crypto fucks up by itself (see FTX and Terra for the most recent ones).
1 USD worth of treasuries or bank deposits, not a USD directly.
Re: An Update on USDC and Silicon Valley Bank
#23Re: An Update on USDC and Silicon Valley Bank
#2423% of the reserve, or $9.7B is held in cash. I think on Thursday, SVB saw cash outflow requests over $40b in one day. USDC peg is so far below 1 right now there will definitely be a lot of par arbitrage Monday trying to withdraw. Hopefully it doesn’t take longer than a day for them to settle treasury trades, and maybe some people have lost the keys to their crypto. They could also possibly have a line of credit with…
Can one short USDC with leverage?
Re: An Update on USDC and Silicon Valley Bank
#25After 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 no stablecoin and it has been constantly pointed out that it wasn't. USDC is backed 1 USDC for 1 USD. What you're actually seeing here is that the traditional finance system has lead to a crash in crypto. That's almost refreshing. Usually crypto fucks up by itself (see FTX and Terra for the most recent ones).
What's their balance sheet at the moment assuming 8% of cash is missing? Is it still 1:1 or 1:.94?
Also coindesk says TerraUSD is a stablecoin.
https://www.coindesk.com/price/terrausd/
Washington Post too:
https://www.washingtonpost.com/business/what-are-stablecoins...
Also Gemini says it as well:
Re: An Update on USDC and Silicon Valley Bank
#26>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
Mmmm no. That’s not what is going on here.
Re: An Update on USDC and Silicon Valley Bank
#27After 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.
Over the last 24 hours USDC had a low of $0.85 at 3 AM EST to a high of $0.98 at 3 PM EST.
I wonder how many startups would take a 2% - 15% cut to withdraw their money for short term expenses.
Is there a secondary market for deposits at banks? Like a Silicon Valley Bank Stable Coin (Probably would have been called a Silicon Valley Dollar before 1913)
Re: An Update on USDC and Silicon Valley Bank
#28>Moreover, SVB has a strong franchise that is at the center of American entrepreneurship and technology industry growth. Tl:Dr: Save us, Big Government.
That’s a cheap shot, does roku deserve a 470+m haircut?
> deserve
IDK what that word means, in a financial context.
Can you get paid based on this "deserve"?
---
But in reality, no, no one will lose 100%.
Re: An Update on USDC and Silicon Valley Bank
#2923% of the reserve, or $9.7B is held in cash. I think on Thursday, SVB saw cash outflow requests over $40b in one day. USDC peg is so far below 1 right now there will definitely be a lot of par arbitrage Monday trying to withdraw. Hopefully it doesn’t take longer than a day for them to settle treasury trades, and maybe some people have lost the keys to their crypto. They could also possibly have a line of credit with…
The creators of USDC could destroy their own coins to restore the 1:1 reserve peg. I doubt they'd do it, but it would immediately restore confidence.
Send them to a null address or commit to burning them in software. If they can restore the reserve, they could remint them.
I'm a crypto bear (with modest crypto holdings for diversification), and I think this is an opportunity for these folks to step up to the plate and show they can meet these sorts of challenges. If you can successfully navigate a bank collapse, then maybe you deserve a seat at the table. I'm not holding out my hopes for USDC though.
Re: An Update on USDC and Silicon Valley Bank
#30What 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 if anything does this mean then? FTA: >As a regulated payment token, USDC will remain redeemable 1 for 1 with the U.S. Dollar.
Its "lying". In the same way that SVB was solvent as long as there wasn't a run.