Relevant note: 8% ($3.3B) of it was backed by deposits in SVB.
The extent of the lack of trust here (resulting in such a strong depeg) is interesting.
[0]: https://www.bloomberg.com/news/articles/2023-03-11/usd-coin-...
The extent of the lack of trust here (resulting in such a strong depeg) is interesting.
[0]: https://www.bloomberg.com/news/articles/2023-03-11/usd-coin-...
This is the most tempted I’ve been to buy a stablecoin, but I will stay on the sidelines and just watch this one. Edit to clarify: USDC seems like one of the most “above board” stablecoins, but I’m still extremely skeptical stablecoins generally, given their collective history.
Edit: one issue I see is that, given herd mentality and skittishness, it is possible that > 90% of USDC gets withdrawn quickly enough that you could get left holding the bag. Even if USDC is 99% backed, that doesn’t help if you’re left with the last 1% of it (unless the backing company decides to make you whole, at their own loss). I could see that scenario playing out in the crypto world, so I’m happy with my decision to stay away.