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I guess what the bank needed and what the customers needed were fundamentally at odds then. There was a run on USD coin due to this fiasco, it didn't have enou
by faeriechangling 4y ago
I guess what the bank needed and what the customers needed were fundamentally at odds then.
There was a run on USD coin due to this fiasco, it didn't have enough liquidity to pay all its customers, and yet people stopped their run on the asset because people figured that there was no way they weren't going to get something like 90+ cents on the dollar within 3 months so it was pointless to sell beyond that point, and because it became pointless to sell beyond that point it meant that the value was probably going to approach $1 so people pumped the price back up.
When I look at something like that, I really wonder if it's really so structurally impossible to make a bank where nobody has an incentive to do a run on you in anything but the most extreme of cases.