What happening with USDC?

[AllYourBitcoinRBelong2Us]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

[Cee2]

Stablecoins are privately issued.
Just because circle says it’s worth $1 doesn’t mean that the market sees it this way.
It will be interesting to see how this plays out. If USDC dies like UST I think the stablecoin market is finished in its current form.
If a super centralized Organisation with this much backing goes under honesty nobody stands a chance.
There is only one entity that can say $1 USD is worth $1USD and that’s the US government.

[cryptoresearcher2]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

circle just confirmed yesterday 3.3 billion of its reserves were in silicon valley bank that went bust

[Cee2]

Woah looks like it’s not just USDC but also DAI and USDD.

If three of the top 10 stablecoins go down in my opinion all current stablecoins will go down.

[rhomelmabini]

If USDC dies like UST

You should have known that the case with UST and USDC are totally different here. You think Coinbase or BlackRock won't be able to cover the loss here? I wouldn't be able to tell but it's telling me they can.
Edit: https://twitter.com/DefiIgnas/status/1634417367265734656?t=2-uPwIEAzez2eHvGnJLA5A&s=19

Woah looks like it’s not just USDC but also DAI and USDD.

The case with DAI is explainable but I don't know the case with USDD depegging too, maybe just because from panic sellers.

[jossiel]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

[Ultegra134]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

[jossiel]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

I've said that it won't be ending the same as UST, what I'm telling is its collapse for now means a lot to the market.

I believe that USDC will still recover, it's far from the collapse of UST and we both agree with that. As long as Circle will remain committed to its production and development of USDC, many will still believe them that this just has to pass.

I like DAI and it didn't really looked when it fell to $0.93, it has gotten me some worry but I'd still trust it as it's still not that too deep. Who knows if by tomorrow they'll even fall below $0.8 but hopefully, not.

[vv181]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

Circle does not have a $3.3B deposit in Silvergate, it is on another bank, SVB or Silicon Valley Bank. See this tweet from the official Circle account: https://twitter.com/circle/status/1634391505988206592.

Based on monthly the latest Jan 2023 attestation, Silvergate is one of another bank who Circle held the reserves. As we know, besides SVB which goes bust, Silvergate the bank is also closing down its business, but it will come with full repayments of the deposit.

Contratry to UST, I don't think it will have the same effect, the market got swayed down is certain, but the degree if USDC going collapses will be much significantly deeper, note that DAI is also affected.

[Ultegra134]

~Snipped~

My main concern is that this collapse greatly affects the market. I don't mind the recent fall of Bitcoin; I'll receive more BTC through my signature campaign, and I'm happy about that, but FUD is going to spread all over cryptocurrencies again, which, as I said earlier, is putting a dent in how people perceive cryptocurrencies. Hopefully, I didn't have any USDC, only USDT and BUSD, and although I also believe (and hope) that it'll recover soon, I doubt that it's going to crash even further.

[Oneandpure]

Could be second time bad issues after dropping with stable coins from Luna network as USTC and right now faced problem with USDC after price dropping almost $0.92. There are not exact detail what happening with USDC and how possibility price drop drastically as stable coins, worry will USDC become the next USTC?

Nowadays, I am not trust any more with many kinds of stable coins except with USDT, there are many possibility with other stable coins network although with BUSD have potential drop one days later, keep saving your fund in trusted stable coins or better hold Bitcoin and Ethereum is more benefic than stable coin.

[teramit]

USDC:because usdc works clear we know that it has a reserve in bank system and some of it is gone it's price affected from this
USDT:because we are not sure that bigots where they hold their reserve we wont know if 3b usd of them dissappears , so if that bitch goes it will be sudden.
UST: that bastards pegged this so called stablecoin to another altcoin and gave %20 interest, it went inevidable death spiral.
DAI: they are asset backed and some of their assets were usdc
usdc and dai were honest, at least on paper, others not.

[MAAManda]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

Many have explained here about why the USDC depeg phenomenon could occur, at first I only believed in USDC because based on the underlying, those who have real USD assets to issue USDC, but with this incident, I don't know where else to trust, because like what we know is that USDT is not fully backed by real USD, meanwhile BUSD also had issues some time ago which had something to do with Paxos.

[cryptoresearcher2]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

USDC is made by Circle.

Circle has $3.3B deposits in Silvergate bank.

Silvergate bank files forced liquidation and that means a lot for Circle and mostly affecting USDC.

See news: Crypto bank Silvergate announces liquidation amid sector turmoil

Just like the collapse of UST and Luna, that means a lot to the market which affects the entire whole crypto market but I don't think that USDC will be ending the same as UST/USTC. And whenever there's sort of news like this, the involved crypto whether it's a stable coin or an alt coin, it's always been affected and getting a lot of dumps which results to its value goes down.

USDC has nothing to do with UST; it won't have the same fate. However, this is denting trust in cryptocurrencies, especially stablecoins. Do you believe that the USDC will recover? We are already seeing other stablecoins depegging; even BUSD has suffered losses, though minimal, and it's still below $1. DAI has also suffered a major decline, dropping to $0.93. This doesn't look too optimistic, and it may cause another huge crash in the market. This may also cause the end of stablecoin staking.

I've said that it won't be ending the same as UST, what I'm telling is its collapse for now means a lot to the market.

I believe that USDC will still recover, it's far from the collapse of UST and we both agree with that. As long as Circle will remain committed to its production and development of USDC, many will still believe them that this just has to pass.

I like DAI and it didn't really looked when it fell to $0.93, it has gotten me some worry but I'd still trust it as it's still not that too deep. Who knows if by tomorrow they'll even fall below $0.8 but hopefully, not.

most likely will not be ending the same way but 3.3 billion $ is not chump change, that's serious money to lose.
also might take years to come to a conclusion as the bank goes in to bankruptcy...ect

[hugeblack]

I'm going to take a gamble by transferring about $500 and exchanging it to USDC, and let's see if I can make an easy 8% profit or if it's a big loss for me.
As for what happened, it is because of the $3.3B deposit in Silvergate, and we hope that they have enough liquidity to reassure users, otherwise the effect will be closer to a domino.

DAI using USDC As a basic reserve, along with several reserves, so it is normal to know that the price has decreased for them.
Based on the list of markets, Kucoin has a lot of USDT pairs.

[Johnyz]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

Probably because of many issues with their other investments and the current movement of the whales, don't panic because USDC can survive this since there's no major issue against them aside from the liquidation news and as you can see its value started to recover after dropping that much. If I have funds right now, I will always take risk to buy USDC at such price, this is temporary and they can solve this one because we can't afford another stablecoin to ended up like UST.

[slashz9]

I think because there has been a lot of bad news saying that, then these things can happen and one of them happened to Silicon Valley Bank where they are rumored to have 25% of the total supply of USDC so it becomes a FUD for USDC.
but we can also see that 1$ is not always worth 1$, I believe that if half of the total supply of usdc is sold en masse then the value will drop below 0.5$.

[crzy]

Not really sure how all these stable coins work but how did a stable coin that is supposed to be equal to one US Dollar go down in price?

It was a domino effect, with their partnership with the other projects which is currently having a problem. Worry no more because the currency price is already at $.96 which i think is already a good and might be back to be more stable in the coming days. I know the trauma of many because of what happened to UST, but I think the situation of USDC is quiet different, they are more organized compared to UST.

[goaldigger]

Could be second time bad issues after dropping with stable coins from Luna network as USTC and right now faced problem with USDC after price dropping almost $0.92. There are not exact detail what happening with USDC and how possibility price drop drastically as stable coins, worry will USDC become the next USTC?

Panicking might also be the reason especially we already have bad experience from UST, but I read some news that the price drop because the failure of their partnered bank which holds a lot of USDC. Though it looks ok now and more stabilized, I think it can still result to a trust issues with the stablecoins. Honestly, I’m not holding any stablecoin now for the same purpose, better to convert into Bitcoin for now while they are still having problem.

[tvplus006]

The CEO Circle Jeremy Allaire tried to explain in detail on his Twitter what happened to USDC and and Silicon Valley Bank - https://twitter.com/jerallaire/status/1634649346535833601?s=20 And it looks like he managed to reassure investors, as the price increased to $0.978 Obviously, someone has made a very good profit on this Fud today.