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I think the market is stupid on this one. I would buy USDC on a discount if I had the liquidity on hand. I have been wrong before, but this looks like an overre
by RealityVoid 4y ago
I think the market is stupid on this one. I would buy USDC on a discount if I had the liquidity on hand. I have been wrong before, but this looks like an overreaction.
- evdubs 4y agoThis is likely an overreaction to trade down 10%
- charcircuit 4y agoNot necessarily. As more businesses start exchanging USDC for USD with Circle the ratio between the reserves and USDC will get worse and worse. If a bank run happens 3.3 billion will become a big percentage of the total market cap and USDC will go to $0. The value of USDC right now is a combination of how much of that $3.3 billion will be recovered, how likely people think a bank run on USDC is, and predicting what actions Circle will take to try and save this.
- shawabawa3 4y agoDo centre have equity to backstop the reserve? I'm not 100% sure how the centre/circle/coinbase partnership works