3 ms·
This is likely an overreaction to trade down 10%
by evdubs 4y ago
This 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