Silicon Valley Bankrupt USDC collapses. Some USD Coin (USDC) holders have fled to other stablecoins amid concerns around solvency following revelations that a small portion of USDC collateral is held in Silicon Valley Bank.Investors in the crypto space panicked after Silicon Valley Bank (SVB) was hit by bankruptcy.
Even though the banking lenders are not directly related to the crypto industry, the capital crisis experienced by SVB has dragged several crypto companies along, one of which is the USDC stablecoin issuing company, Circle.
PUSDC holders have been competing to switch to other stablecoins since Friday (10/3/2023). Unfortunately not all USDC holders who switch to other stablecoins are lucky. One USDC holder reportedly paid over 2,000,000 USDC to receive 0.05 US dollars in Tether (USDT).
The KyberSwap decentralized trading platform is used in the transaction. Kyberswap is a decentralized exchange (DEX) that combines the liquidity of multiple DEXs.
Silicon Valley Bankrupt USDC collapses. After confirming the swap at level 0x in the pop-up, the bot detected the opportunity and earned 2,085,256 USDC from the Uniswap v2 (Univ2) binary smart contract system pool. KyberSwap is in talks with bot authors, bot users and third parties to assist with fund recovery.
One of the USDC holders who switched to other stablecoins, Tron Foundation founder Justin Sun reportedly withdrew 82 million USDC using the decentralized finance protocol Aave v2 and exchanged it for Dai (DAI), with a value of nearly 75 million US dollars.
The digital wallet associated with IOSG Ventures sold 118.73 million USDC for 105.67 million USDT, as well as 2,756 Ether (ETH) valued at 3.98 million US dollars through three addresses. Even so, the venture firm is known to still hold nearly 45 million USDC.
The USDC price slowly recovered after turbulent trading hours on Saturday (11/3/2023), until it traded at the US$0.98 level on Sunday trading (12/3/2023).