Circle was 1% of SVB’s assets. First there was a run on the (traditional, regulated) SVB because VCs caught a whiff of desperation and told all their portfolio companies to exit. Next came the run on USDC because $3 billion was locked inside SVB.
Contagion spreading to non-mega banks because the federal government told them to buy “risk free” treasuries and mortgage backed securities. Rates go up and suddenly if they need cash the bonds must be sold at a loss.
To blame a problem caused by central banking on crypto is absurdity to the highest level.
Contagion spreading to non-mega banks because the federal government told them to buy “risk free” treasuries and mortgage backed securities. Rates go up and suddenly if they need cash the bonds must be sold at a loss.
To blame a problem caused by central banking on crypto is absurdity to the highest level.