🏦 The Silicon Valley Bank collapse collapse has forced USDC to break its peg to the dollar.
USDC is currently trading at over a 4% discount to the dollar. See the attached chart.
Some of the cash backing USDC was held in Silicon Valley, only $250K is covered by the FDIC, and therefore USDC faces losses on its reserve holdings. At this point, it's unknown if USDC still has $1 in liquid assets supporting the value of every $1 in issued USDC.
Once confidence is lost it's almost impossible to win it back.
This ought to be interesting. 🍿👀
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