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An Update on USDC and Silicon Valley Bank

circle.com

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Re: An Update on USDC and Silicon Valley Bank

#91

Post by braingenious »

capableweb wrote: post #90
braingenious wrote: post #83

Earlier quoted context omitted.

I’m hearing that you can’t even use USDC to exchange for bitcoin/ETH on Coinbase right now. What does converting between types of crypto have to do with banks? Those transactions should in theory have nothing to do with a banking transaction. It seems like they’re simply forcing people to hold USDC, full stop, and are blaming banks for their decision to do so.

USDC is supposedly backed by USD. If Cirle/Centre doesn't have access to enough USD, they cannot maintain the peg of USDC.

What does that have to do with exchanging for crypto?

If I move USDC from one wallet to another, and someone else moves bitcoin from one wallet to another in exchange for that USDC, that transaction happens entirely on the blockchain and at no point involves a bank or a peg.

The only reason to disable that function is to force people to hold USDC.

Re: An Update on USDC and Silicon Valley Bank

#93

Post by braingenious »

nikanj wrote: post #71
braingenious wrote: post #56

I’m not very knowledgeable on this topic, so I have a legit question about all of this: How is pausing withdrawals not blatant currency manipulation? If I had USDC and lost all faith in it yesterday, shouldn’t I be allowed to cash out today? Also, if they’ve got many billions in cash, why would losing access to a sliver of it justify shutting down withdrawals? “Trust us, it’s worth a dollar! Or don’t trust us! It doe…

Because crypto is not currency. It’s more like the fake money at Habbo Hotel

The path is gray.

Re: An Update on USDC and Silicon Valley Bank

#94

Post by yunohn »

> redemption is constrained by the working hours of the U.S. banking system

Why do they keep saying this? This should’ve always been the case, regardless of SVB’s collapse. Seems more like a non sequitur to cover for an actual issue.

Re: An Update on USDC and Silicon Valley Bank

#95

Post by babyshake »

WalterSear wrote: post #45
bb88 wrote: post #24

Earlier quoted context omitted.

Can one short USDC with leverage?

Short? I can't see this not returning to it's peg by the next news cycle. It's free money. SVB went bankrupt - as a business: it can't pay its bills. People are reacting to this as if the deposits have vanished entirely. If you think USDC is a shorting opportunity, short anything crypto. USDC is literally the second largest domino.

You think USDC failing would be bigger than ETH failing? If ETH broke in a way it couldn't recover from I would think that is the second biggest domino (close to tied for first, even).

Re: An Update on USDC and Silicon Valley Bank

#96

Post by yunohn »

capableweb wrote: post #87
danaos wrote: post #49

I have always kept away from circle after they were caught manipulating reviews. https://www.reddit.com/r/Bitcoin/comments/5ms1zc/after_being...

I'm pretty sure that's against Apple's App Store T&C and the application would be banned by flooding fake 5 star reviews. It would also be pretty easy to detect. Was the app ever banned or everything proceeded as normal? Is Apple in Circle's pocket somehow?

It’s been demonstrated innumerable times that the App Store is not actually well maintained.

Eg - https://twitter.com/TechEmails/status/1631352764247977985?s=...

Re: An Update on USDC and Silicon Valley Bank

#97

Post by 323 »

braingenious wrote: post #83
323 wrote: post #69

Earlier quoted context omitted.

They didn't pause anything. The US banks did, by not working in the weekend (for large sums). If you had 1 billion USD with your favorite US bank, that would be paused too right now.

I’m hearing that you can’t even use USDC to exchange for bitcoin/ETH on Coinbase right now. What does converting between types of crypto have to do with banks? Those transactions should in theory have nothing to do with a banking transaction. It seems like they’re simply forcing people to hold USDC, full stop, and are blaming banks for their decision to do so.

> I’m hearing that you can’t even use USDC to exchange for bitcoin/ETH on Coinbase right now.

That would be the fault of Coinbase, not Circle or USDC. On other exchanges, like Bitstamp, you can freely buy/sell your USDC to crypto/fiat.

Re: An Update on USDC and Silicon Valley Bank

#98

Post by jdross »

sql-spy wrote: post #92

[flagged]

This is FUD spreading — they filed an 8-k on friday dispelling concerns here and emphasizing their diversification of fund sources and liquidity.

it’s smart to limit exposure to insurance caps, but that doesn’t mean there is going to be a contagion de facto

Re: An Update on USDC and Silicon Valley Bank

#99

Post by WalterSear »

babyshake wrote: post #95
WalterSear wrote: post #45

Earlier quoted context omitted.

Short? I can't see this not returning to it's peg by the next news cycle. It's free money. SVB went bankrupt - as a business: it can't pay its bills. People are reacting to this as if the deposits have vanished entirely. If you think USDC is a shorting opportunity, short anything crypto. USDC is literally the second largest domino.

You think USDC failing would be bigger than ETH failing? If ETH broke in a way it couldn't recover from I would think that is the second biggest domino (close to tied for first, even).

Sure, but Eth isn't as much of a financial domino being propped up.

If the internet failed, all crypto would fail. Does that make it the biggest domino in crypto?

Re: An Update on USDC and Silicon Valley Bank

#100

Post by wmf »

yunohn wrote: post #94

> redemption is constrained by the working hours of the U.S. banking system Why do they keep saying this? This should’ve always been the case, regardless of SVB’s collapse. Seems more like a non sequitur to cover for an actual issue.

Some people are saying "gotcha! you can't redeem" as if that's a real problem and Circle is clarifying that you could never redeem on the weekend.
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