And so it begins:
Discussion
You wouldnt happen to know why this is happening right?
I’m not sure if you’re being funny or serious so I’ll leave sarcasm out in case you are serious or for those who really don’t know and are curious.
Circle, the backer/company of USDC holds 25% of reserves in cash across 6 banks, one being SVB. All parts being equal, that’s 4.16% of $44b or ~$2b held at SVB (Probably more if they really liked them) that are now essentially worthless meaning the token isn’t actually worth $1 because it isn’t backed 1:1 and now 1:0.96. Hence the sell off, which depegs further and could put further strain on the remaining 5 as well as USDC holders try to sell for cash.
Grab a beverage and pull up a chair. This could get wild! 🥃🪑🍿🎆
Great summary.
Oh my lord my crytpo friends are scared shitless which is why i asked, now im here laughing💀🤣🤣🤣🤣
