Rattled crypto industry could emerge stronger after USDC depeg

Others, though, were more measured. BTC and ETH began to fall on March 10 and the early part of that weekend, noted Abraham. “If the U.S. government had not stepped in to backstop depositors in the U.S., and HSBC had not bought the U.K. bank, there would likely have been significant pain across the crypto sector when the markets opened again on Monday [March 13].”Others suggested that USDC basically did everything right; it was just unlucky.

“Much of the discussion to date on the risks of fiat-backed coins like USDC has focused on the issue of reserve composition, quality and liquidity. This is a material concern. Yet it is not the only concern.” As the University of Central Florida’s Venugopal earlier said, depeggings erode the confidence of new investors and potential investors sitting on the fence. “This further delays the widespread adoption of decentralized financial applications,” said Venugopal, adding:

“The crypto markets have always been rich in irony,” Kelvin Low, a law professor at the National University of Singapore, told Cointelegraph. “For an ecosystem that is touted to be decentralized by design, much of the market is centralized and highly intermediated. Tether only appears to be stronger than USDC because all of its flaws are hidden from view.” But flaws can only be hidden for so long, Low added, “as the FTX saga demonstrates.

Moving forward, “It will also be very important for stablecoin investor transparency to continually know what proportion of reserves are held at which banks,” said Clements.

I'm struggling to fully understand the concept of stablecoins being pegged to a fiat currency. Wasn't the original goal to break free from fiat? StableCoins Cryptocurrency

For several harrowing days, USDC lost its peg to the U.S. dollar, sinking to as low as $0.85 (depending on the exchange) before recovering to $1.00 on Monday, March 13. This was the coin that many considered to be the poster child for fiat-based stablecoins.

Crypto will fly , banks will die

Loopring $LRC it's a DEX and will replace the entire banking system!

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