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Startup A had 10M in SVB. Startup B had 10M in USDC. Startup A is probably closing down, let's hope not and wait until Monday for a bailout. Startup B cut los
by Claudeppl90 4y ago
Startup A had 10M in SVB.
Startup B had 10M in USDC.
Startup A is probably closing down, let's hope not and wait until Monday for a bailout.
Startup B cut losses and walked away with ~9.2M, on a weekend.
There is something to learn here about counterparty risk and outdated regulations/legislations. SVB from a time when no credit cards existed, USDC from a world where the iPhone had already been invented.
- ttul 4y agoYou can hedge the risk of your own bank failing by purchasing put options on its stock, assuming it trades publicly and has an active options market. I don’t know anyone who has ever done that, but it’s a neat idea.