Hello. With the new drop in bitcoin, many bad news have reached the cryptographic world yesterday, March 11, the stablecoin had a considerable drop and this worried many investors who had their profits in said stablecoin. Despite the sharp drop today, it managed to recover its value a bit, trading at 0.9898 dollars.
But let's analyze a bit why USDC dropped so suddenly, according to the Circle company, USDC issuer, it had part of these tokens in the Silicon Valley Bank, which recently declared bankruptcy. This created doubts about the support of the stablecoin, which caused a drop to the 0.88 US dollars losing 0.12 dollars in a matter of hours.
The Circle company asks its users to calm down, as we can see in their twitter account where they say that everything is operating normally, but in my opinion as a stablecoin is operating normally when its price that would be anchored to a dollar drops to 0.88, by definition a stablecoin must have a standard price of 1 to 0.99 dollars.
I think it was a bad idea to tweet that everything was operating normally since the responses of its users were evident, and there was anger on their part since the words they used did not achieve the objective, I think that words like we are going to fight to stand firm it would have been more reassuring for its users.
But analyzing things, I think that the drop in USDC helped large investors who believed that the stablecoin was recovering its value, took advantage of the discount to obtain some benefit with the new increase in the stablecoin. Since to date it has recovered almost the total value.
But at the moment the opinion in the community is divided and there is still not enough official information about it. We will have to wait to see the outcome of this story, hopefully it has a happy ending.
Conclusion |
|---|
As with any event, there is always a solution to problems, I do not think that USDC will reach rock bottom since it has a large community behind them and the trust that the community has will make this stablecoin recover its value immediately, if there is no trust and it is lost the interest of the community and investors this stablecoin was going through a bad situation at the moment.