My breakdown of the stablecoin depegging

https://twitter.com/AmitMukherjee/status/1634539610293297152

Founder of venture DAO Chainforest (www.chainforest.xyz). Also treasury Co-Lead @ FWB. Liftcaster. Fashioncaster. Dadcaster. NYCaster. NBA Caster.

Expecting this to go back to 1, and soon

Unlike the UST/LUNA debacle, there are actual assets backing USDC

I suspect circle will freeze withdrawals before it goes to 0. Remember it is centralized, and this seems to be better than the alternative of going to 0. 

Why then is the market pricing USDC as if all SVB deposits are worthless? 

Feels like we are in a current state of extreme overreaction, maybe due to all the 2022 trauma.

Outside the idea of 'backed or insured assets' being the narrative for stablecoins, we could go full vapor ware, ehm sorry consumer confidence like some..other token 😅

Good summary. I wish more crypto people would read stuff 🥸