What happening with USDC?

[larry_vw_1955]

I would like to inform you that, actually DAI (which is a stablecoin) was 100% backed by Ethereum for years, before it moved onto a multi-collateral backing.

yeah at this point, it seems like a safer thing than having your stablecoin backed up by some bank in the usa that could fail and take your value with it. i guess that's a failure point no one expected could happen but now we can see it very clearly.

[bitkanu]

It's recovering now, im just hoping that it will never collapse, since it might trigger chain of events that is bankruptcy of many projects.
I'd say many projects including individual shouldn't be too much reliant in stablecoin, it's just really vulnerable against massive collapse, they should spread their portfolio more towards bitcoin and ethereum.

[Rasa nanas]

I don't know for sure why the price of USDC almost fell to $0.9, it's clear that after the UST incident many people were afraid that it would happen again. after the UST incident the team from USDC should be able to read the public's concerns because USDC is one of the most popular stable coins, and if something bad happens to USDC it will definitely have a big impact on the crypto market.

[larry_vw_1955]

I don't know for sure why the price of USDC almost fell to $0.9...

I do, it's because a bank they had some of their greenbacks in failed. So the FDIC insurance only covers like $250,000. The other couple billion was not insured.  

so that's money down the drain they'll never get it back. maybe taxpayers can pickup the bill. they always do.