Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Panic Grips Crypto Market as Circle Confirms $3.3 Billion in USD Reserves Held by Regulated Bank FDIC, Leading to USDC's Decoupling from the Dollar and Surge in USDT Trading.
Drama in the crypto market as USDC loses its peg to the US dollar, following the holding of 3.3 billion dollars in reserves by Silicon Valley Bank, which has been closed down by regulators.
This has caused panic in the crypto market, leading to the loss of USDC's peg to the dollar.
Coinbase, which announced a halt to trading in B US D, Binance's stablecoin, a few weeks ago, and reduced conversion fees to 0 percent between USDT and USDC so that its users "could switch to a reliable stable coin," announced last night that it is freezing conversion between USDC and USD for the weekend, while banks are closed.
With all this uncertainty, some may question why cryptocurrency, which has nothing to back it besides its limited supply, is now seen as even riskier than the US dollar, which is backed by nothing but an infinite printer.