After the reports of Silicon Valley Bank shutting down, USDC lost 3% of its value as soon as Circle confirmed that its 3.3 billion USD has stuck with them. A Circle executive also envisions border implications for banking, entrepreneurs and businesses without any Fed rescue plan.
USDC falls below its 1-dollar mark
Recently, USDC lost its 3 per cent value as soon its issuer Cirlce revealed that it could not withdraw 3.3 billion USD of its 40 billion USD from one of the world’s largest banks in the world, Silicon Valley Bank. This statement resulted in a sell-off of the coin, which led to its price falling below the 1-dollar mark.
As per the news, On March 9, 2023, Circle, the issuer of USDC, initiated a wire transfer for the removal of its fund from Silicon Valley Bank as the Federal Deposit Insurance Corporation-insured bank was about to close down its operations. However, two days later, Circle revealed that the initiated wire transfer was not completely processed, and 3.3 billion USD out of 40 billion USD is still with the bank.
As soon as this news spread across the crypto traders, the USDC prices fell down immediately and led to falling below its 1 dollar mark. By the time of writing this article, USDC, also known as USD Coin, had lost over 10 per cent of its total value, currently trading at 0.8774 dollars.
Mr Disparate, Chief Strategy Officer for Circle, released a statement stating that Silicon Valley Bank is a critical part of the United States economy and warned that if it fails without any Feds rescue plan, it will have huge implications for banking, entrepreneurs, as well as business.
Circle redeemed USDC worth 1.4 million USD in 8 hours
As you know, USDC lost 3% of its value as soon as Circle confirmed that its 3.3 billion USD has stuck with the Silicon Valley bank. Discussing this matter, Chief Strategy Officer for circle, Disparte, said they had worked closely with their teams to limit any exposure to banks, including the 3.3 billion USD wire transfer request made before SVB’s FDIC receivership. He also revealed that Circle had redeemed USDC worth 1.4 million USD in the span of 8 hours.
What are your thoughts on the downfall in the price of the Circle-issued stablecoin, USDC? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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