USDC Depegs, SVB Collapses, and Meta Lays an Egg

Today, everyone is talking about the Silicon Valley Bank (SVB) collapse. What happened and why is it significant? It turns out the bank was heavily invested in government bonds. When interest rates rose, bond values fell. Unfortunately, SVB didn’t have enough cash reserves and began selling its bonds for huge losses. This sparked a panic among some customers who began withdrawing their funds. Another bank, Signature Bank, followed. Janet Yellen has signaled that there will be no bank bailout even while deposits are being secured. As it turns out, some crypto firms were impacted.

Bitcoin gets a big bounce after mini-U.S. banking crisis. How much was USDC volatility involved? The Fool says Lightning Network could ensure bitcoin becomes a viable alternative currency. The top 5 trending Bitcoin Ordinals collections.

Ethereum launches account abstraction.

New York bends KuCoin over the water cooler. _The only public entity more aggressive against crypto firms than the Securities and Exchange Commission (SEC) is the New York Attorney General. _Crypto think tank Coin Center says Ethereum is not a security and here’s why.

USDC depegged from the U.S. dollar on Saturday. It held $3.3 billion in reserves in SVB. Why do stablecoins depeg? Is there any safe stablecoin?

Binance is converting $1 billion from BUSD to BTC, BNB, and ETH. Binance is offering Ukraine law enforcement personnel training via webinar.

Coinbase claims to have had $240 million cash in Signature Bank.

Ripple was exposed to SVB. Ripple CEO claims the company is still strong.

Meta is working on a Twitter-like social app called P92. Twitter is like that kid in high school that everyone modeled themselves after even though he was awkward, obnoxious, stupid, rude, and a bully. No one really liked him, but because he always had a girl on his arm, everyone wanted to be like him. Now, the high school quarterback is getting in on the action by mimicking everybody’s hero. After graduation, Twitter ends up homeless, on heroin, and the town mayor’s Friday night play thing. Meta goes on to superstardom but still consider itself the best face of Twitter.

OpenSea fixes vulnerability that could expose user identities.

Brave Browser wallet extension users can now sell digital assets inside of extension.

Crypto philanthropy is alive and well in the U.S., the UK, and Australia. Can you guess where else?

President Joe Biden signs yet another executive order to define his stance his cryptocurrencies. It’s essentially all the same old talking points: Protect the consumer, encourage innovation, and maintain global financial stability. Make no mistake here. The real end goal is to protect the U.S. dollar.

Is Web3 really more secure than Web2? _Probably not. _73 percent of brands don’t buy into the Web3 hype. Why Web3 adoption is falling behind.

Former Congressman Barney Frank says crypto is the common element among bank failures. As banking and traditional financial institutions gain more exposure to crypto, I expect more government-led measures to protect them from fallout.

Pokémon could be making a Web3 play with new hire.

Mirror is introducing a new way for creators to interact with their fans called Subscribe to Mint. Mirror is improving on its Web3 publishing offer for creators and because of some recent changes, I’ll be using it more. Subscribe to Mirror for exclusive benefits.

Women prefer Monero and Dogecoin.

HEX crypto promoter deletes tweets.

Better Fan has a unique twist on sports predictions with Fan Card NFTs.

Aussies are being warned to verify their crypto wallets.

A crypto mining company took advantage of Egyptians.

South Korea launches metaverse fund.

Snark and commentary are in italics. Inclusion of an item doesn’t mean I agree or endorse the ideas presented. Of course, it also doesn’t mean I don’t.

Cryptocracy is a decentralized newsletter published several times a week. I curate the latest news and crypto analysis from some of the brightest minds in crypto, and sometimes offer a little insightful and snarky commentary. Always fresh, always interesting, and always crypto. Original articles on Fridays.

First published at Cryptocracy. Not to be construed as financial advice. Do your own research.

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