USDC Crash News: Silicon Valley Bank collapse turns out to be the biggest bank to fall since the financial crisis erupted in 2008. However, this crisis has also indulged the cryptocurrency industry with it. U.S. digital asset firm Circle stated that it has $3.3 billion stuck in the collapsed bank which sent out a massive shockwaves in the market.
USDC Got Vitalik’s Back?
USD Circle (USDC), a dollar backed stablecoin, registered a massive depegging event after its issuer announced funds reserved in the SVB. USDC price dropped by over 10% in the last 24 hours. Collapsing from its $1 pegged value, USDC went on to trade at $0.90.
Amid this time of crisis. Ethereum co-founder Vitalik Buterin seems to be supporting the depegged stablecoin. As per the data, Vitalik labeled wallet address converted several digital tokens into the USDC.
PeckShieldAlert reported that Vitalik labeled address deposited 500 Ethereum in the Reflexer. Then he went on to mint 150K Rai Reflex Index (RAI) amid the ongoing crisis. However, the address swapped 132.5k RAI for 378.5K USDC. while the remaining 17.5K RAI was swapped for 50K DAI, another depegged stablecoin within few hours
Earlier, Vitalik has stated that he is optimistic about the RAI model. Reflexer (RAI) is an algorithmic stablecoin which is non-pegged and is solely collateralised by the Ethereum.
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Main content of the article:
Silicon Valley Bank’s recent collapse, thought to be the largest since the 2008 financial crisis, has plunged the cryptocurrency industry into uncertainty: digital asset firm Circle has claimed that the bank’s closure was instrumental in causing $3.3bn worth of losses. The USD Circle (USDC) – a dollar tied stable coin – lost 10% of its value, falling from a unit of $1 to $0.90. In the midst of this crisis, Ethereum co-founder, Vitalik Buterin, transferred a series of digital tokens into the USDC. He initially deposited 500 Ethereum into the Reflexer, before creating 150K Rai Reflex Index, but subsequently swapped 132.5k RAI for 378.5K USDC, and 17.5k RAI for 50k DAI.
