2023-03-29 18:41:08
Can the USDC repeat the fate of UST?
Most cryptans didn't have a very good morning this morning. At night, the USDC rate collapsed by about 10% — now the stablecoin costs not $ 1, but $ 0.91.
The sharp decline in the price was due to the fact that Circle, which issues USDC, kept about 7% of reserves in Silicon Valley Bank, which declared bankruptcy.
Some cryptans worry that the USDC will collapse to almost zero, as well as UST, so they panic and sell the portfolio.
Is it worth worrying about?
• UST's problem was that it was not backed by real assets. The USDC has real reserves, so repeating the fate of UST is technically impossible.
• Currently, the USDC is at least 90% secured. This is if we take into account that 7% of reserves are stuck in the bank.
• Hypothetically, Circle can take out a loan to fill a hole in the budget and restore reserves.
• No one is interested in the fall of the USDC, because it will cause a new wave of bankruptcies in the crypto market.
The Fed has already announced an emergency meeting to be held on Monday. Perhaps it will discuss future measures that will help the industry.
It seems that there is no special reason to worry yet.
@informationNFT
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