Coinbase hit the brakes on conversions between USDC stablecoin and US dollars late Friday as fallout from Silicon Valley Bank's collapse spread into the heart of crypto trading.
In a tweet, the crypto exchange said it was"temporarily pausing" the conversions while banks are closed over the weekend. It said it planned to restart conversions on Monday. Coinbase supports redemptions between US dollars and USDC as Circle Internet Financial's partner in the Centre Consortium, USDC's issuer.
While temporary, the pause speaks to the chaos that's roiled the crypto industry's second-largest stablecoin in the wake of Silicon Valley Bank's demise. All day Friday crypto traders speculated on the stability of USDC and redeemed $1.6 billion of the stablecoin, lowering its total supply. Circle counted on Silicon Valley Bank as a parking spot for $3.3 billion of cash backing the $40 billion USDC; the fate of that cash is now uncertain, as SVB has been seized by the FDIC.
"During periods of heightened activity, conversions rely on USD transfers from the banks that clear during normal banking hours," Coinbase said in its tweet."When banks open on Monday, we plan to re-commence conversions."
realDannyNelson Fubar
realDannyNelson So, Tether, that coin they've all been fudding is still looking pretty stable right now, weird, but USDC is all over the shop, chosen one not looking so good right now.
realDannyNelson Coinbase is not a blockchain system. Degree of Centralization is terrifying. For all intents and purposes they're a legacy type financial broker.
realDannyNelson They do it because they don't have reserves, im sure
realDannyNelson Same energy
realDannyNelson Conbase.
realDannyNelson I didn't see 'will' in their post. I saw 'may'.
realDannyNelson It is happening
realDannyNelson I will short it when it's available on binance . If usdc repeg I only gonna lose 10-13% ,if usdc going deeper I can get profit more than the risk
realDannyNelson Can't they just redeem USDC with their own money if everything is alright?
realDannyNelson Now it's too late to buy Bitcoin when you can't get to your bank account, a lot of people are realizing that right now.
realDannyNelson Lmao 🙂😆
realDannyNelson coinbase is actually protecting their users. The people dumping their USDC now at a discount are donating profits to USDC. On monday morning USDC will be able to move funds from bank accounts to defend their positions and return back to the peg.
realDannyNelson
realDannyNelson Why not just buy Bitcoin with USDC?
realDannyNelson make_berri is USDC going to be stable ?
realDannyNelson Its depegging hard
realDannyNelson BUSD is next
realDannyNelson Rip
realDannyNelson If you have USDC on Coinbase, you can still send it to a Ledger hardware wallet and then convert it to bitcoin or ethereum.
realDannyNelson
realDannyNelson Coin base is run by Azov skinhead, all falls into place
realDannyNelson Basically USDC will go to 0 once the banks open on Monday
realDannyNelson Is Coinbase protecting USDC?
realDannyNelson will they tho? Lmao
realDannyNelson Wtf is going on, usdc is depegging! It's at .93$
realDannyNelson 🥲
realDannyNelson Ftx said the same thing 🫣
realDannyNelson They have suspended ALL USDC conversion pairs...
realDannyNelson lol
realDannyNelson we need to rename them unstable coins
realDannyNelson
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