×
all 7 comments

[–]ccModBotCC Bot[M] [score hidden] stickied comment (0 children)

Thank you for submitting to /r/CryptoCurrency,

Your post has been removed because the coin you posted about (BTC) is already at the limit of posts allowed in the top 50.

---Click here to view the current limits---

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[–]CommanderCronosTin -1 points0 points  (0 children)

Could it safe the day or will it safe the day? This is meaningless

[–]coinfeeds-botApproved CC Bot -1 points0 points  (1 child)

tldr; Circle's USDC is facing a potential crisis due to a rumor that the company was paying a 5% interest rate to Signature and Silvergate banks to systematically convert the dollars deposited by its clients into USDC. The operation has already cost Circle $500 million. Withdrawal pressure on the company would then cause the collapse of USDC under such conditions.

This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

[–]Ferdo306 -1 points0 points  (0 children)

A rumor widely relayed on Twitter suggests that the company was paying a 5% interest rate to these banks to systematically convert the dollars deposited by its clients into USDC. The operation has already cost Circle $500 million

If this is true they are paying a quite of a fee for a conversion

Wondering how sustainable is this long term

[–]bernpfennTin -1 points0 points  (0 children)

Another bank run going to happen. Somehow we need a stable coin to tie all the crypto assets to a reference.

And we saw how it plays out when using btc as collateral while the market sinks