USD Coin (USDC), the world’s second largest stablecoin, has been stabilized at $1. After the disruption, investors flocked to Coinbase, which provides a 1-to-1 USDC:USD facility, causing a temporary suspension of transactions.
America’s leading cryptocurrency exchange Coinbase has become one of the platforms affected by the stablecoin crisis. Circle’s reserves in the bankrupt Silicon Valley Bank (SVB) have some After USDC’s announcement Its fixation on 1 dollar is broken.. Investors from many platforms started to exchange alternative stablecoins, especially USDCs in their hands.
While the stablecoin crisis continues, some investors He noticed that 1 USDC to 1 USD conversion is possible on Coinbase. With this information spreading over social media in a short time, investors flocked to Coinbase to realize the aforementioned transformation.
Equal to 1 dollar from different exchanges due to USDC whose peg has deteriorated USDT in exchange for less than $1 USDC Investors who bought it transferred their converted USDCs (for example: 1 USDT > 1.03 USDC) to Coinbase. USDCs via Coinbase after transfer Converted 1 to 1 to USD. With USD in hand by buying any cryptocurrency again Investors who send this crypto money to an exchange other than Coinbase, then buy USDC again. did the cycle over and over and benefited from a 1 to 1 USDC conversion on Coinbase.
Due to this transformation method, which spread rapidly on social media, investors flocked to the stock market and all cryptocurrencies on Coinbase were compared to the market. started trading at higher prices. Investors who convert USDCs, which they bought from another exchange, to USD, can save their money. Assets they purchased to remove from Coinbase caused the price to rise.
After a while, Coinbase converts USDC/USD to announced its suspension. In the statement made, he stated that this transformation represents the transfers on the banks, and since the banks are closed on weekends, the transactions will continue on Monday.