SVB Shut Down + USDC Depeg

SVB Shut Down + USDC Depeg

Hello there!

Seeing how things have been unfolding since the start of the bear market, nothing surprises us anymore—until centralized entities start affecting overall sentiments in the decentralized world.

You must know what we’re talking about (unless you were on vacation on the moon for the past week).

Silicon Valley Bank, the 16th largest US bank, collapsed last week, taking several crypto platforms down with it. One of the biggest shakers was USDC de-pegging after crypto Twitter discovered that its parent company, Circle, had $3.3bn in the bank.

While it dropped to $0.88 at the time of the incident, USDC has since picked up and now trades at $0.98 (some traders make quick gains from the shortfall)

Is this another UST case? Surely not, and we’ve included a post that explains why.

Want the full story and follow-ups? Stick to our newsletter, and don’t forget to share with someone you know. Also, you can keep track of USDC’s price using the Coinigy platform.

  • Silicon Valley Bank collapse — everything we know so far
  • USDC depeg – Everything we know so far
  • Why the USDC depeg is not a reason to panic
  • New York regulator sues KuCoin over sale of unregistered securities

Silicon Valley Bank collapse — Everything we know so far

SVB Financial Group bought some of the safest assets in the world of finance. How could it possibly have failed in two days? Here are some questions and answers to help explain what happened.

USDC depeg – Everything we know so far

A day after the west-coast bank Silicon Valley Bank (SVB) was placed into federal receivership and both deposits and withdrawals ceased, Circle, the issuer of the stablecoin USDC, lost its $1.00 peg to the US dollar, prompting fears of a run on the stablecoin similar to what happened during the wind-down of UST in the wake of its de-pegging from Terra Luna. Here’s everything we know so far.

Why the USDC depeg is not a reason to panic

The crypto industry is currently experiencing anxiety due to concerns about the potential detachment of USDC, a stablecoin supported by US dollars. Anndy Lian shares some of his personal views on the situation. Read it here.

New York regulator sues KuCoin over the sale of unregistered securities

New York state Attorney General Letitia James announced that she has filed suit against cryptocurrency exchange KuCoin after she was able to buy and sell crypto on the exchange, which is not registered in New York. Here’s the full story.

Other Highlights Worth Mentioning

  • Binance US Cleared to Buy Voyager Assets as Judge Dismisses SEC Objections - Decrypt
  • Biden budget proposes 30% tax on crypto mining electricity usage - Crypto Times
  • Alameda Research to sell interest in Sequoia Capital to Abu Dhabi for $45M - Business Insider