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Terra was no stablecoin and it has been constantly pointed out that it wasn't. USDC is backed 1 USDC for 1 USD. What you're actually seeing here is that the tr
by bhaak 4y ago
Terra was no stablecoin and it has been constantly pointed out that it wasn't.
USDC is backed 1 USDC for 1 USD. What you're actually seeing here is that the traditional finance system has lead to a crash in crypto. That's almost refreshing. Usually crypto fucks up by itself (see FTX and Terra for the most recent ones).
- whimsicalism 4y ago1 USD worth of treasuries or bank deposits, not a USD directly.
- bb88 4y agoWhat's their balance sheet at the moment assuming 8% of cash is missing? Is it still 1:1 or 1:.94? Also coindesk says TerraUSD is a stablecoin. https://www.coindesk.com/price/terrausd/ https://www.coindesk.com/price/terrausd/ Washington Post too: https://www.washingtonpost.com/business/what-are-stablecoins-why-did-terrausd-go-so-wobbly/2022/07/06/20f1c9a0-fcfc-11ec-b39d-71309168014b_story.html https://www.washingtonpost.com/business/what-are-stablecoins... Also Gemini says it as well: https://www.gemini.com/en-us/prices/terrausd-ethereum https://www.gemini.com/en-us/prices/terrausd-ethereum
- bhaak 4y agoTheir balance sheet is still 1:1 as the 8% at SBV has not yet been written off. The market reacts faster of course but the market has no crystal ball. It can't predict what's going to happen.
- JumpCrisscross 4y ago> USDC is backed 1 USDC for 1 USD It’s at least 87¢ and 23¢ of priority unsecured claims on a bank in receivership.
- chejazi 4y agoI assume you're deriving the 23¢ from the 23% they have banked, but I would like to note that of that 23%, roughly a third (3.3bn of 9.7bn) was with SVB. The rest was with other banks not facing the same issue.
- Laaas 4y agoArguably, the FTX debacle is in the same bucket, as it was caused by people having their money on an exchange that essentially functioned like a fractional reserve bank.
- landemva 4y agoFTX functioned more like a self-flushing toilet.