{"id":617133,"date":"2023-03-12T09:09:09","date_gmt":"2023-03-12T14:09:09","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/12\/is-usdc-going-to-zero-major-shareholders-selling-off-usdc-could-mean-total-value-drop-to-zero-says-cryptoquant-founder\/"},"modified":"2023-03-12T09:09:09","modified_gmt":"2023-03-12T14:09:09","slug":"is-usdc-going-to-zero-major-shareholders-selling-off-usdc-could-mean-total-value-drop-to-zero-says-cryptoquant-founder","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/12\/is-usdc-going-to-zero-major-shareholders-selling-off-usdc-could-mean-total-value-drop-to-zero-says-cryptoquant-founder\/","title":{"rendered":"Is USDC Going To \u201cZero\u201d ? Major Shareholders Selling Off USDC Could Mean Total Value Drop to Zero, Says CryptoQuant Founder"},"content":{"rendered":"
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The stablecoin market is in turmoil following the depegging of Circle Internet Financial\u2019s USDC stablecoin from its intended $1 price. The event has been called a \u201charrowing development\u201d for a product designed as a safe haven for investors.<\/p>\n

According to CryptoQuant founder Ki Young-ju<\/a>, value dropping to zero means major shareholders are selling. While there is currently no on-chain proof of a USDC bank run, the situation has caused significant concern among investors.<\/p>\n

No USDC Bank Run Found Yet, but Circle Burns $2.34B<\/strong><\/h2>\n

Although no on-chain proof of a USDC bank run has been found, Circle has burned $2.34 billion in USDC in the last 24 hours. While this is a significant amount of money, it is not unusual when looking at the historical data.<\/p>\n

According to what I\u2019ve observed, this USDC situation is a completely different case from the UST collapse in May 2022. During the UST collapse, on-chain activities prior to the collapse indicated that LFG sent BTC to exchanges and issued infinite LUNA to restore the UST peg.<\/p>\n

SVB Run Causes Stablecoin Price Swings and Soaring Gas Fees<\/strong><\/h2>\n

Stablecoin prices have wildly swung and gas fees have soared as investors scramble to move money around in the aftermath of regulators shutting down SVB amid a run on the bank. The bank had ties to crypto, making it the second crypto-linked bank to collapse this week.<\/p>\n

Circle Internet Financial confirmed that about $3.3 billion of the reserves backing the world\u2019s second-largest stablecoin were tied up at SVB. Stablecoins derive their value from these reserves, and USDC\u2019s market capitalization has now slumped below $40 billion.<\/p>\n

USDT Spikes as Investors Shift Money Away from USDC<\/strong><\/h2>\n

USDT, meanwhile, has spiked to $1.06 on Kraken versus the U.S. dollar, a level it almost never hits, as investors appear to shift money away from USDC. Bitcoin rose in response to the events.<\/p>\n

As the stablecoin market remains in flux, investors are keeping a close eye on developments to see how they will affect the broader cryptocurrency ecosystem.<\/p>\n<\/div>\n

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\n Sohrab Khawas<\/p>\n","protected":false},"excerpt":{"rendered":"

The stablecoin market is in turmoil following the depegging of Circle Internet Financial\u2019s USDC stablecoin from its intended $1 price. The event has been called a \u201charrowing development\u201d for a product designed as a safe haven for investors.According to CryptoQuant founder Ki Young-ju, value dropping to zero means major shareholders are selling. While there is<\/p>\n","protected":false},"author":1,"featured_media":617134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[903,36264],"tags":[],"class_list":{"0":"post-617133","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-going","8":"category-zero"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=617133"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/617133\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/617134"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=617133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=617133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=617133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}