FIAT-BACKED STABLECOIN

USDC was down 10% as of yesterday, it is because of Silicon Valley banks which of course why many banks sold off. There are many people being affected by Silicon Valley bank. The big question here is, what does an external bank have to do with the crypto space? USDC is a fiat-backed stablecoin that had funds and still have funds in Silicon Valley. Circle still have 3.3 billion dollars of reserve that they use to back their stablecoin locked in Silicon Valley bank. The last year's crypto market has been the greatest onslaught and the biggest FUD.

---

We know what happened to Silicon Valley bank, it sold off a 21 billion Bond portfolio for a huge loss to shore up liquidity. This is bad because what you have is an actual bank run. The problem you have when you get sell-offs or you get liquidity crunches in a low-liquid environment, it causes Cascade. This is why I think the FED is going to Pivot and it is going to be a lot sooner than everybody thinks. People think the FED is going to keep rates at this level for a year but that is not going to happen. It's been a bank when they just haven't had the funds to service everyone and in a low liquidity environment, they are not going those funds on less there is some sort of stimulus given.

---

You don't have to panic if you are holding USDC, I'm sure there is going to be a solution forward for this. They still have 36.7 billion dollars and I think this is going to be rectified because 3.3 billion dollars is a lot of money. The problem you have with this situation is that you get contagion. It is interesting because we did see the likes of Binance come out and say they are no longer going to try and use USDC and they are going to convert it all to a different stablecoin. Maybe they know something was coming down the roads before it actually did. This is unfortunately everything is right now, you are in a destructive environment caused by the FED.