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Wow, converting USDC to USD (fiat) on Coinbase is paused for the weekend, "while banks are closed" USDC is currently trading at .996 on CoinMarketCap (although

Wow, converting USDC to USD (fiat) on Coinbase is paused for the weekend, "while banks are closed" USDC is currently trading at .996 on CoinMarketCap (although some exchanges are reporting .98, .97, or even .95 -- although that's mostly smaller exchanges for now) Either way, people are taking a discount to get out of it and switching to USDT (now at a $72b market cap) or Bitcoin (hence the price rise) And Binance paused auto-conversion of USDC to BUSD

turingfeel 4y ago
USDC/USD at Kraken is currently .925 with $174m 24h Volume.
tempsy 4y ago
i’m surprised this disclosure alone caused it to depeg this much
deleted 4y ago
[deleted]
irjustin 4y ago
Well the point is that it isn't supposed to matter. If they're backed 1:1 as claimed (BIG IF). Technically, anyone left holding a USDC should be allowed to go to Circle and say HEY give me $1 for each. Let's see how that goes. Stablecoins am I right?
- badloginagain 4y ago
  If they lost $3.3b, it's what, .9175 : 1 ? So nominal price should be $.9175 on the dollar presumably. Add in another couple bips for the uncertainty. Edit: It would be actually hilarious if USDC failed because the banking system. I doubt it will happen, you'd have to see further contagion from the other banks Circle uses for their dollar reserves. I figure the tipping point for a bank run is quite high?
  - brookst 4y ago
    I don’t think it’s remotely plausible that uninsured SVB deposited are just gone, $0 on the dollar. Absolute worst case, they might have lost 10%, or $330m, so .99175. It’s not like SVB was a Madoff scheme and the money is gone; it became insolvent because the current value of its investment vehicles couldn’t support 100% withdrawals.
    - ejanus 4y ago
      Based on their own story. However wait for regulators to look at their books first before concluding .
  - xuki 4y ago
    It's 1:1 until they cannot process withdrawals anymore then it's 0:1. If I had any money in USDC right now I would try to withdraw asap.
- panphora 4y ago
  This assumes their reserves can be liquidated 1:1 in time of panic instead of taking a massive haircut Also, missing 5% of their reserves means the first 95% of withdrawals get 100% of their money and the last 5% get 0%... Hence the bankruns on Silvergate, Silicon Valley Bank, and now USDC

turingfeel 4y ago

USDC/USD at Kraken is currently .925 with $174m 24h Volume.

tempsy 4y ago

i’m surprised this disclosure alone caused it to depeg this much

deleted 4y ago

[deleted]

irjustin 4y ago

Well the point is that it isn't supposed to matter. If they're backed 1:1 as claimed (BIG IF). Technically, anyone left holding a USDC should be allowed to go to Circle and say HEY give me $1 for each. Let's see how that goes. Stablecoins am I right?

badloginagain 4y ago
If they lost $3.3b, it's what, .9175 : 1 ? So nominal price should be $.9175 on the dollar presumably. Add in another couple bips for the uncertainty. Edit: It would be actually hilarious if USDC failed because the banking system. I doubt it will happen, you'd have to see further contagion from the other banks Circle uses for their dollar reserves. I figure the tipping point for a bank run is quite high?
- brookst 4y ago
  I don’t think it’s remotely plausible that uninsured SVB deposited are just gone, $0 on the dollar. Absolute worst case, they might have lost 10%, or $330m, so .99175. It’s not like SVB was a Madoff scheme and the money is gone; it became insolvent because the current value of its investment vehicles couldn’t support 100% withdrawals.
  - ejanus 4y ago
    Based on their own story. However wait for regulators to look at their books first before concluding .
- xuki 4y ago
  It's 1:1 until they cannot process withdrawals anymore then it's 0:1. If I had any money in USDC right now I would try to withdraw asap.
panphora 4y ago
This assumes their reserves can be liquidated 1:1 in time of panic instead of taking a massive haircut Also, missing 5% of their reserves means the first 95% of withdrawals get 100% of their money and the last 5% get 0%... Hence the bankruns on Silvergate, Silicon Valley Bank, and now USDC