Coinbase suspending USDC:USD conversions over the weekend

Post by [deleted] » Sat, Mar 11, 2023, 9:58 AM UTC

carlsborg wrote: post #90

kersplody wrote: post #4

USDC is managed the Centre consortium, which was founded by Circle and includes Coinbase as a member. Circle held around $3.3 billion in Silicon Valley Bank, leading to a run on USDC which resulted in it trading for as little as $0.95 on some exchanges today (Mar 10, 2023). This represents around 30% of USDC's cash reserves and 7% of its total reserves. The balance of reserves are held in T-Bills, which are liquid an…

> The balance of reserves are held in T-Bills Similar to SVB, from what I understand. SVB parked several billion in treasuries when rates were at ~1.6%, when interest rates went up, that portfolio drew down, they exited with a loss, this triggered a run. So if Circle has 70% of its reserves in T bills, they possibly took a market to market loss too, depending on how they were hedged. (Disclaimer: i have not seen SVB…

Post by mtlmtlmtlmtl » Sat, Mar 11, 2023, 9:59 AM UTC

fladrif wrote: post #96

mtlmtlmtlmtl wrote: post #46

Earlier quoted context omitted.

That doesn't make them stable. The 2008 financial crisis was literally caused by big US banks. They then had to be bailed out. This is not a symptom of a stable banking system. It's a symptom of the banks having a disturbing amount of power over the government, which is not a good thing. They were able to conduct what is essentially fraud at a massive scale with impunity because they knew the gov would bail them out…

Well whether or not you think banking / government cooperation is a good thing, the fact of the matter is that even when large catastrophes occur, the system is brought back up on its feet. You can't say the same for crypto systems, luna / terra being a very recent example.

Post by null0pointer » Sat, Mar 11, 2023, 10:08 AM UTC

mtlmtlmtlmtl wrote: post #22

CGamesPlay wrote: post #12

Earlier quoted context omitted.

The crypto people can take a W on this one, though. USDC transfers still work, so there's no cash flow problem... as long as you can buy your tomatoes with USDC, this won't cause you problems.

TIL there's a food market on the dark web.

Post by simmerup » Sat, Mar 11, 2023, 10:28 AM UTC

dannyw wrote: post #106

raverbashing wrote: post #79

Earlier quoted context omitted.

Tether is pretty much being propped up by thoughts and prayers at this point

Tether has successfully maintained its peg for nearly 10 years now, despite being an enemy of the US government. That is actually an incredible achievement.

Post by drexlspivey » Sat, Mar 11, 2023, 10:50 AM UTC

simmerup wrote: post #107

dannyw wrote: post #106

Earlier quoted context omitted.

Tether has successfully maintained its peg for nearly 10 years now, despite being an enemy of the US government. That is actually an incredible achievement.

It helps that you can only turn it into real money in 100k chunks.