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I admittedly understand very little about the crypto ecosystem, but how is this not a death knell for USDC? Wasn't its entire premise built around maintaining 1:1 parity to the US dollar? That feels very binary to me. If one USDC does equal one US dollar, then the coin has failed, no?

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They (stable coins) go up and down in small increments all the time, as the peg adjusts. Even Tether at one point was worth 0.91 USD but recovered. They've had a bunch of dips but somehow seem to always recover.

Until they don't, I guess. Haven't happened yet, but shouldn't say it's impossible.

Is the SVB situation a death knell for banks?

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