{"id":562469,"date":"2023-03-11T19:48:05","date_gmt":"2023-03-11T16:48:05","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-whales-suffer-huge-losses-due-to-usdc-depeg-svb-collapse\/"},"modified":"2023-03-11T19:48:05","modified_gmt":"2023-03-11T16:48:05","slug":"crypto-whales-suffer-huge-losses-due-to-usdc-depeg-svb-collapse","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-whales-suffer-huge-losses-due-to-usdc-depeg-svb-collapse\/","title":{"rendered":"# Crypto whales suffer huge losses due to USDC depeg, SVB collapse"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3ce8326f7aa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3ce8326f7aa\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-whales-suffer-huge-losses-due-to-usdc-depeg-svb-collapse\/#%E2%80%9D_Crypto_whales_suffer_huge_losses_due_to_USDC_depeg_SVB_collapse_%E2%80%9C\" >&#8221; Crypto whales suffer huge losses due to USDC depeg, SVB collapse &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_whales_suffer_huge_losses_due_to_USDC_depeg_SVB_collapse_%E2%80%9C\"><\/span>&#8221; Crypto whales suffer huge losses due to USDC depeg, SVB collapse &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvYjVhZGQyMDYtZmFiNS00ODZkLTg2ZjUtNjJmNmRkYjQxYTg2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>In response to the extraordinary depegging event of the USD Coin (USDC) stablecoin caused by the collapse of its counterparty Silicon Valley Bank (SVB), crypto whales have reported severe losses and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to have embarked on a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of capital flights to protect assets. Du Jun, the co-founder of cryptocurrency exchange Huobi Global, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DujunX\/status\/1634460694610608128\">posted<\/a>:\u00a0<\/p>\n<blockquote><p>\u201c[I] dodged, LUNA, dodged 3AC, even dodged FTX [and their collapse], but I couldn\u2019t avoid Silvergate, nor SVB and USDC. Asked a few crypto veterans; losses amounted to &gt;$1 billion in stock and deposits, myself included. I\u2019m very upset, and it\u2019s time to cut down on my budget.\u201c<\/p><\/blockquote>\n<p>The same day, blockchain personality and Tron founder Justin Sun <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PeckShieldAlert\/status\/1634461007803461632\">reportedly<\/a> withdrew 82 million USDC from the decentralized finance (DeFi) protocol, Aave v2, over a series of transactions and swapped from Dai (DAI). At the time of publication, 82 million USDC is worth $75.26 million.\u00a0<\/p>\n<p>Speaking of DAI, MakerDAO, the stablecoin\u2019s issuer, filed an emergency protocol on March 11 that, among many items, called for restrictions on minting DAI using USDC to prevent panic selling. MakerDAO is one of the largest holders of the stablecoin, with over 3.1 billion USDC ($2.85 billion) in reserves collateralizing DAI, which also depegged as a result. Subsequently, crypto projects incorporating DAI in their tokenomics also\u00a0suffered losses due to a chain reaction.\u00a0<\/p>\n<p>Curve Finance, a popular DeFi protocol for trading stablecoins, reported a historic all-time high daily trading volume of $5.67 billion due to the events. In context, the protocol only has a total value locked of $3.77 billion. A few other platforms simply could not handle the sheer volume of trade requests relating to USDC. In one incident, a user received just 0.05 Tether (USDT) after paying over 2.08 million USDC in a swap that resulted in a permanent loss. In an update, KyberSwap, the decentralized exchange responsible for facilitating the swap, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/KyberNetwork\/status\/1634524632220057600\">said<\/a> it was \u201cassisting with funds recovery\u201d and is in touch with the user regarding the issue.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Senpai, did you dump all your usdc already?<\/p>\n<p>\u2014 Curve Finance (@CurveFinance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CurveFinance\/status\/1634548074667204608?ref_src=twsrc%5Etfw\">March 11, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Loki Zeng, a prominent DeFi analyst at New Huo <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a>, Circle\u2019s reserves are spread among $32.4 billion in treasury instruments, $3.3 billion in deposits at SVB, and $7.8 billion in deposits at other financial institutions. Zeng <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Loki_Zeng\/status\/1634410350505508864\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cFor USDC to go bust, it needs to satisfy three conditions; there is an abundance of deposits on SVB, and three other at-risk banks, the recovery rate for such deposits remains low, and USDC cannot mitigate such losses.\u201c<\/p><\/blockquote>\n<p>Zeng added that his personal opinion is that \u201cthere is a low probability of an issue, and even if there is an issue, it won\u2019t be as severe as FTX.\u201c Nevertheless, the DeFi analyst added that his estimate for the net value of USDC is \u201c$0.885 at extreme situation and $0.985 at normal situation.\u201c At the time of publication, the price of USDC has fallen 8.30% in the past 24 hours to $0.9163.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today, I finally understand the anger that led to the creation of Bitcoin.<\/p>\n<p>Who do you trust with ur livelihood? <\/p>\n<p>A \u201cgov insured\u201d bank that\u2019s not actually insured?<\/p>\n<p>An exchange that goes bust? <\/p>\n<p>A stablecoin that depegs? <\/p>\n<p>Or a currency that makes you 8% poorer every year?<\/p>\n<p>\u2014 Nuseir Yassin (@nasdaily) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nasdaily\/status\/1634435848530690048?ref_src=twsrc%5Etfw\">March 11, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Alex Svanevik, CEO of blockchain analytics firm Nansen, also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ASvanevik\/status\/1634558951537909761\">commented<\/a> that Circle and USDC \u201ccan make it.\u201c However, Svanevik also warned that Circle requires \u201ctop-class execution over the next few days,\u201d such as \u201cflawless redemptions,\u201c and no calls for \u201cbailouts publicity.\u201c In another tweet, Svanevik also revealed that a user moved 25 million USDC from their PulseX sacrifice wallet and exchanged it for DAI.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">A few hours ago, someone moved $25m USDC out of the PulseX Sacrifice wallet into a new wallet, and swapped it for DAI.<\/p>\n<p>Interesting.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/c0hZkquuZb\">https:\/\/t.co\/c0hZkquuZb<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/Pg3jB4aW1n\">pic.twitter.com\/Pg3jB4aW1n<\/a><\/p>\n<p>\u2014 Alex Svanevik  (@ASvanevik) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ASvanevik\/status\/1634550542579175426?ref_src=twsrc%5Etfw\">March 11, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-whales-suffer-huge-losses-due-to-usdc-depeg-svb-collapse\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto whales suffer huge losses due to USDC depeg, SVB collapse &#8220; In response to the extraordinary depegging event of the USD Coin (USDC) stablecoin caused by the collapse of its counterparty Silicon Valley Bank (SVB), crypto whales have reported severe losses and appear to have embarked on a series of capital flights to&#8230;<\/p>\n","protected":false},"author":1,"featured_media":562470,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/b5add206-fab5-486d-86f5-62f6ddb41a86.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,133012,117],"class_list":["post-562469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-curve-finance","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=562469"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/562469\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/562470"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=562469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=562469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=562469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}