USDC is currently following UST trend from May 2022. Shortly after depeg, the price dipped to $0.76, then, after few hours, rebounded to $0.9. 24 hours after depeg it started spiraling down towards 0.
Do what you want with this information.
USDC is currently following UST trend from May 2022.
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all things considered the situation with USDC is substantially different from UST
UST was using their own coins to prop up the price
USDC "might" have 3-4B missing from their balance sheets, making USDC a 90 cent stablecoin
If its not going up to 1 dollar nobody will use the coin anymore since they want a dollar stablecoin. Everyone will sell eventually. There is no room between 0 and 1 dollar to stay in for long.
Anon, do you realize that USDC is actually backed by something unlike all the shitcoins that you hold? You can literally convert it to dollars.
It's backed by inflation, collapsing banks and a false notion of price stability as we all see is very much unstable. None of this is claimed with shitcoins which unironically makes it the better deal.
But now not everyone can convert. People think 'oh it's still 92% backed so it's worth $0.92.' But in fact it is 100% backed for the people who convert to USD fastest, and it will be 0% backed for the people bagholding at the end of the bank run.
^^^^^
these,
legal documents don't mean shit to big corporations, they can break the agreement if they have to and call it a "black swan" event. if USDC goes to zero, the ceo + chair still leave with $$$ and the bagholders take the loss.
most businesses +corporations are literally filed under LLCs which is Limited Liability Company meaning in the event that if they were to fail, it's chill.
Right now you can only literally convert it to 90 cents
LUNC was top 10 token and had retards like you spouting how LUNC will never fail. Circle can't even get USDC to repeg so how on earth are they going to get back $2bn back, COinbase disabling USDC withdrawals, SBV causing a chain reaction with other banks collapsing or even being the catalyst for the next recession. There are too many variables against USDC recovery
They could literally just say, ok we'll redeem 1 USDC for 0.9 USD, and this is the new peg unless and until we get the settlement from SVB.
Then, they could even rename USDC to USDCC (classic!) with its 0.9 peg, and begin operating a new USDC with exactly the same business model as the old one, allowing you to transfer USDCC to USDC at a ratio assuming USDCC is 0.9.
That's literally the worst case scenario. That's pretty bad, but it's as bad as it gets. It's nothing like UST.
you are so retarded lmfao. i wish i could see your post history
Probably the stupidest thing I’ve read on here
If they sell it, you can go exchange it for a profit
For example, lets say the prince tanks to 0.70 or something. If they only have enoigh to cover 0.90, thats stil a 0.20 profit if you buy the USDC and cash it out.
No goofus it's a fully backed stable coin. You can take it to circle and cash out if you want. Even if we assume that they just lost 10% of the backing funds and could never get it back, they would still be able to give 90 cents per coin.
Terra was backed by nothing, just trying to balance the value between 2 coins. Predictably it triggered a negative feedback loop when shit started to go bad which only made it worse.
>their reserves are treasuries bought at low interest rate
>if not held into maturity it will sell at discount since current rates did a 5x
COPE TRANNY YOUR SHITCOIN IS GOING TO ZERO
No, Circle has to honor redemptions at $1 by law until they cannot. This means the first 90% of withdrawals are 1:1 and if they get to the last 10% holders are getting zero
wouldn't be surprised if 10% of the USDC supply is either lost or locked up in hacked accounts that cannot easily sell.
>"it's different this time"
sell bro
Just watch what the dollar does to crypto come sunday night. One less hour to wait!
I don't hold any USDC, but when it can't maintain the peg it's basically over. Better to lose 10% of what you had than to lose 99.999%
Circle has a $100 million cushion between reserves and liabilities, with $3.3 billion cash held at SVB. Even if they recover a whopping 95% of their balance from the bank the liabilities will exceed reserves by >$60 million
No amount of technical autism changes these facts.
If they're down 5% and their coin is down 10% then they can buy-and-burn their own coin to make up the shortfall. but that's none of my business.
This, it took 1 day to go to 0.8, 5 days to go down to 0.1
sorry i'm not losing 10%
not selling
Fine by us.
I don't get stable coins they're not really stable because of inflation on the dollar why not just store your money in a bank at that point
https://www.kraken.com/prices/usd-coin?interval=1h"e=usd
Its back to 95 cents
aaanad its back to 91 cents
its over