USDC is currently trading at .996 on CoinMarketCap (although some exchanges are reporting .98, .97, or even .95 -- although that's mostly smaller exchanges for now)
Either way, people are taking a discount to get out of it and switching to USDT (now at a $72b market cap) or Bitcoin (hence the price rise)
And Binance paused auto-conversion of USDC to BUSD
Technically, anyone left holding a USDC should be allowed to go to Circle and say HEY give me $1 for each.
Let's see how that goes. Stablecoins am I right?
So nominal price should be $.9175 on the dollar presumably.
Add in another couple bips for the uncertainty.
Edit: It would be actually hilarious if USDC failed because the banking system. I doubt it will happen, you'd have to see further contagion from the other banks Circle uses for their dollar reserves. I figure the tipping point for a bank run is quite high?
Absolute worst case, they might have lost 10%, or $330m, so .99175.
It’s not like SVB was a Madoff scheme and the money is gone; it became insolvent because the current value of its investment vehicles couldn’t support 100% withdrawals.
Also, missing 5% of their reserves means the first 95% of withdrawals get 100% of their money and the last 5% get 0%...
Hence the bankruns on Silvergate, Silicon Valley Bank, and now USDC