DAI and USDC depegged!

[dimonstration]

Today this 2 stable coins crash for almost 12% - 20% price decrease on the dollar. Probably this is the effect of Circle downfall due to Silvergate and Silicon Valley Bank collapse which is holding most of there reserve funds.

I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

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[mindrust]

That's very bad news for crypto. If USDC goes down, lots of banks and other institutes will go down with it. Hell it even might affect USDT and other stable coins too. This has the potential to create a total meltdown on crypto and if crypto gets affected that widely then it would affect the stock market. That would create a very big hole in the markets. (imagine what would happen if coinbase was filing bankruptcy and right now they stopped usdc widthdrawals)

But why is that happening now? Is it because Powell's hawkish speech or was this planned long time ago?

I feel like something very big and very bad is coming towards us.

[dimonstration]

That's very bad news for crypto. If USDC goes down, lots of banks and other institutes will go down with it. Hell it even might affect USDT and other stable coins too. This has the potential to create a total meltdown on crypto and if crypto gets affected that widely then it would affect the stock market. That would create a very big hole in the markets.

But why is that happening now? Is it because Powell's hawkish speech or was this planned long time ago?

I feel like something very big and very bad is coming towards us.

Probably this is the aftershock of FTX collapse once again since the fund involves is just circulating on all the project that get bankrupt.

I saw this image that explains graphically on these companies connected to each other through USDC funds.



I’m expecting more company will follow since USDC has a lot of exposure. What puzzles me is the DAI. I still don’t see their involvement to USDC while it’s token is depegged on same level with USDC. Let’s wait for the full report.

I smell that this move is related to CBDC preparation.

[irsykes]

wouldn't have thought a stable coin could collapse almost simultaneously. this will have a slower impact on the growth of crypto which has started to improve but on the contrary is not good enough. i think a big conspiracy is being run by the rich to where to get a good start, for in the future ahead of the significant altcoin market

[Unbunplease]

Why artificially create problems with stablecoins? To encourage people to buy bitcoins, because bitcoin is the last thing that can turn into a cryptocurrency scam. Any Stablecoin has a team-owner, while bitcoin does not (an important advantage). Maybe soon, as a result of the problems with stabelcoin, we will see the price of bitcoin rise because of increased demand?

[o48o]

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I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

When you say avoid stablecoins, do you mean all the stablecoins and what is the alternative? Totally cashing out? Because if tether fails, every crypto fails with it. Right now those two stablecoins are slightly unpegged but every crypto out there is affected way more then dai or usdc so i don't see other cryptos as a good stablecoin alternative. USDT should hold, i am 99% sure of it.

[mindrust]

-cut-
I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

When you say avoid stablecoins, do you mean all the stablecoins and what is the alternative? Totally cashing out? Because if tether fails, every crypto fails with it. Right now those two stablecoins are slightly unpegged but every crypto out there is affected way more then dai or usdc so i don't see other cryptos as a good stablecoin alternative. USDT should hold, i am 99% sure of it.

Stable coins weren't always here. There used to be a time where people were only able to trade their crypto against the USD. (I mean the hard USD) Stable coins like Tether happened because the banks stopped doing business with Bitfinex. The main problem lies there.

Banks don't want to do any business with the crypto exhanges. Why do they do that? We need to fix this first.

Bitfinex couldn't fix it so they created an alternative to the USD, USDT.

Now everyone is doing the same thing and it is creating more problems than what it was supposed to fix. The space got bigger than it supposed to,  thanks to the tethers and the other stable coins because the issuers don't give a damn. They create more tokens at will whenever a systemic risk occurs. An exchange is losing liquidity? Is it going bankrupt? Quick, print more! More more more, it is never enough to feed the best completely. Once you begin the printing game there is no end to it.

The FED knows this the best and Bitfinex is just like FED except for one thing. The FED can print USD legally. Bitfinex cannot.

Even if they somehow manage to re-peg the USDC/USD pair, that is not going to fix the core problem of this business model.

Long story short, a correction in crypto is long overdue. Too many scammers around and they need to go away.

[blockman]

Invest safe! Avoid stablecoins for now!

There's actually nothing safe in the market but only bitcoin. Although people might still say that it's not safe because of the volatility that it has in nature.
But with that, most traders are still keeping their profits in any stable coin that they're confident with. Such situations are giving us the idea that we should be proactive in the market because that's giving us the idea on what's happening and what could possibly happen with the projects that we invest in.
So sad to see this happen to these stable coins although that's part of the risk that even stable coins cannot skip these type of scenario. Just be sure that you're aware with all of these scenes and it can happen to other stablecoins.

[tokeweed]

That's very bad news for crypto. If USDC goes down, lots of banks and other institutes will go down with it. Hell it even might affect USDT and other stable coins too. This has the potential to create a total meltdown on crypto and if crypto gets affected that widely then it would affect the stock market. That would create a very big hole in the markets.

But why is that happening now? Is it because Powell's hawkish speech or was this planned long time ago?

I feel like something very big and very bad is coming towards us.

Probably this is the aftershock of FTX collapse once again since the fund involves is just circulating on all the project that get bankrupt.

I saw this image that explains graphically on these companies connected to each other through USDC funds.



I’m expecting more company will follow since USDC has a lot of exposure. What puzzles me is the DAI. I still don’t see their involvement to USDC while it’s token is depegged on same level with USDC. Let’s wait for the full report.

I smell that this move is related to CBDC preparation.

I don't you haven't been reading about crypto much.  I mean I haven't been reading about it as much as I used to but I think I still have a grasp on things.  The thing is, Circle is holding some USD backing the USDC in some bank that went down so a lot of people who hold USDC have been dumping them for other stables, hence losing the peg.

And with DAI, most of DAI is backed by USDC.  Lol.

[wheelz1200]

Today this 2 stable coins crash for almost 12% - 20% price decrease on the dollar. Probably this is the effect of Circle downfall due to Silvergate and Silicon Valley Bank collapse which is holding most of there reserve funds.

I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

depended?

I've never been into spring in those pegged coins never trusted them.  Maybe it's because these types of things are inevitable.  Luna, these depegging, etc always made it feel scammish.  People throw a lot of trust in these projects and they continue to fail, rug, etc.  Bitcoin for me thanks.

[jostorres]

wouldn't have thought a stable coin could collapse almost simultaneously. this will have a slower impact on the growth of crypto which has started to improve but on the contrary is not good enough. i think a big conspiracy is being run by the rich to where to get a good start, for in the future ahead of the significant altcoin market

Well, this wasn't new already. If you are here before and you are following the news around cryptos, you will be aware that the stable coin of Luna is the first one to collapse or depegged and then it followed by others. People are already warned about the possibility of the remaining stable coins that are still at the op of the list but maybe this time have finally arrived.

This is bad and I think this can cause another panic again and another dump in the overall market of cryptos. It will be okay if the impact is only applied slowly and not in an instant so that there is still a chance that the price can fight back and can recover to continue what it had started.

[Almasani]

I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

We shouldn't need stablecoins to trade crypto if the platform provides trading services with USD fiat. The amount of USD circulating in a trading platform is measured based on the dollar deposit value from the bank. Likewise with other currency values. If something bad happens to a stable coin, of course this is a big blow for investors, as happened with Terra stable before.

[onecall123]

I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

We shouldn't need stablecoins to trade crypto if the platform provides trading services with USD fiat. The amount of USD circulating in a trading platform is measured based on the dollar deposit value from the bank. Likewise with other currency values. If something bad happens to a stable coin, of course this is a big blow for investors, as happened with Terra stable before.

I never thought I’d see USDC/DAI price at this low. Things quite stable right now, and USDC/DAI market both are getting back to normal. However, common folks were making a lot of money through arbitrage profits by based on weekend hour FUD. Credit goes to those people panic sold their USDC and thought it would crash and burn like Luna/UST without having a proper understanding. So, It's necessary to educate themself first before making any quick decisions that may harm their financial stability.

[Hallroom]

The main source of Bitcoin's fall was the collapse of Silicon Valley Bank and Silver Gate. Because of these two platforms the USDC coin is decelerating due to the peg just starting to decelerate. Due to which the candles on the BTC market and other platforms are turning red. And the Bitcoin market is now back to normal.

[blockman]

And the Bitcoin market is now back to normal.

Yes, it's back at it again and made a skyrocket gain today. The value and prices of those stablecoins went back again to their former although the gap is just $0.01 for it to be back exactly to $1 and that's the usual move of stablecoins.

I never thought I’d see USDC/DAI price at this low. Things quite stable right now, and USDC/DAI market both are getting back to normal. However, common folks were making a lot of money through arbitrage profits by based on weekend hour FUD. Credit goes to those people panic sold their USDC and thought it would crash and burn like Luna/UST without having a proper understanding.

Those that have sold didn't do their research about the backing of these stablecoins but who are we to blame them? For them, it's better to be safe than sorry but at least they should have monitored things in the market and the news that rotates around the two.

So, It's necessary to educate themself first before making any quick decisions that may harm their financial stability.

I reckon that an investor that's informed of the market that he's in, might miss some opportunities but won't panic in bad situations.

[Abiky]

Today this 2 stable coins crash for almost 12% - 20% price decrease on the dollar. Probably this is the effect of Circle downfall due to Silvergate and Silicon Valley Bank collapse which is holding most of there reserve funds.

I don’t know what’s happening on DAI but best guess is something bad going on MakerDao. Invest safe! Avoid stablecoins for now!

They've crashed, but it seems that now the peg is restored. So much for "collaterized stablecoins" that were often claimed to be a safer alternative to "algorithmic stablecoins". This tells us stablecoins are not 100% guaranteed to hold their peg for a long time. I was shocked to read DAI lost its peg, especially when it's decentralized. Only then, I've realized that MakerDAO had USD reserves on SVB just like Circle's USD Coin. It was a complete mess, but I'm glad everything got sorted out.

If the FED hasn't "rescued" SVB deposits, it would've been the end of both DAI and USDC for good. The issuers need a better strategy to prevent such catastrophe from repeating itself again. Hopefully, regulators will weigh on the industry to give a better sense of legitimacy to mainstream investors and traders alike. Who knows if Tether (USDT) would be the next stablecoin to lose its peg? Just my thoughts

[hd49728]

They've crashed, but it seems that now the peg is restored. So much for "collaterized stablecoins" that were often claimed to be a safer alternative to "algorithmic stablecoins". This tells us stablecoins are not 100% guaranteed to hold their peg for a long time. I was shocked to read DAI lost its peg, especially when it's decentralized. Only then, I've realized that MakerDAO had USD reserves on SVB just like Circle's USD Coin. It was a complete mess, but I'm glad everything got sorted out.

If the FED hasn't "rescued" SVB deposits, it would've been the end of both DAI and USDC for good.

If you are a person who prioritize safety, when those stable coins are stable again like now, you would take this chance to convert your stable coin to either Bitcoin or fiat currency.

I smell very risky to keep belief in stable coins at the moment because they can shady manage behind the scene or they just store their fiat currency in a bad bank like Silver gate, Silicon Valley bank, Credit Suite etc.

And FED has yet rescued those stable coins. They launched a cool down solution for troubling banks and problems have yet been solved entirely. The nightmare has yet ended and worst has yet come.

[crzy]

The main source of Bitcoin's fall was the collapse of Silicon Valley Bank and Silver Gate. Because of these two platforms the USDC coin is decelerating due to the peg just starting to decelerate. Due to which the candles on the BTC market and other platforms are turning red. And the Bitcoin market is now back to normal.

Its still alarming to see such stablecoins to depegged, it looks like they are more vulnerable and not a safe coin to hold when there’s a market crash, they should be more stable though because its their purpose here in the market. Anyway, this will make the market more unpredictable and risky, hard to know if we those stablecoins are still safe or better to hold Bitcoin and just enjoy its volatility while holding.

[lobo13hf]

I guess stablecoin always have the risk of collapsing doesn't matter whether it's collateralized and algorithmic it's all the same, it's always the high risk lenders that causes the chain to break, even binance isn't trusting busd even though they are the one keeps promoting since then. goes to say that stablecoin only fit to be used for temporary tool for storing wealth and keeping it from inflation any longer holding would be risky to us.

[Pterosaur]

Stablecoins are only safe for a short period it seems, now I find it hard to keep money in stablecoins and leave it there, I wonder what will be the proper solution to this depegging issue because whether we like it or not, stablecoins are very useful for crypto investors and traders, I read some comments on Twitter, some are saying Stablecoins was never needed.