USDC is REPEGGING: FUD OVER?

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USDC is REPEGGING - Is the FUD all over and can we go back to chill now? 🌼 GET $30,000 in rewards on Bybit: https://partner.bybit.com/b/boxyt ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● Guides, tutorials a...

AI Analysis

Hey friend! So, the latest video dives deep into the whole USDC de-pegging drama, whether the intense fear (FUD) is finally over, and what lessons we can take away from such a wild ride in the crypto market. It’s all about understanding how human emotion, especially panic, can drive irrational market behavior and create both massive losses and surprising opportunities.

Here’s a breakdown of what went down and what we learned:

* The USDC De-pegging & Its Recovery:
* The video kicks off talking about how USDC, a stablecoin meant to stay pegged to the US dollar, took a significant hit. This was a super crazy time, especially for Asian investors who were gripped by maximum fear, leading to irrational selling.
* The good news is, USDC pretty much re-pegged, meaning it’s back close to $1 again. It’s seen as a great example of how fear works in crypto, often without logical basis.
* There was a wild story of a $2 million panic trade where someone swapped Curve liquidity (which had USDC exposure) for a measly 5 cents! This was a complete loss just because they panicked and sold the wrong thing instead of withdrawing their assets properly from the pool. This really highlights the danger of emotional, uninformed trading.
* Interestingly, the presenter actually made a profitable leverage trade on USDC during its dip, being up 173%! They admit they were a bit cautious, not going 50x, but it shows that when there’s irrational fear, there can be opportunities if you understand the underlying situation. They felt there wasn't enough reason for USDC to drop so low, suggesting it felt like a coordinated "fear attack" on unsophisticated investors.
* A major factor in USDC's recovery was Circle’s (the issuer of USDC) update. They clarified their collateralization (23% in cash and the rest in US Treasuries) and, more importantly, stated they would cover any shortfall from their Silicon Valley Bank (SVB) exposure using their own corporate resources, even raising external capital if needed. This commitment reassured the market.
* The presenter did some quick math on Circle's potential earnings from holding USDC reserves. With roughly $42 billion in reserves earning about 4% interest, Circle could be making an insane $1.6 billion annually. This massive profit potential makes it very feasible for them to cover any relatively small holes, which is a big relief and explains their confidence.

* Gauging the Crypto Market's "Temperature":
* A key takeaway is the importance of "temperature testing" the market. Right now, the presenter feels the temperature is "lukewarm."
* Being "too safe" in crypto can actually be detrimental. Many super cautious people sold their USDC too early or at a massive discount (10% haircut) because they couldn't sleep at night, even though the risk wasn't as severe as they feared. This suggests that in crypto, being overly risk-averse can lead to missed opportunities or even losses.
* Conversely, being "too DGEN" (degenerate, meaning making extremely risky, uninformed trades) also doesn't work in this market. The presenter admitted to buying a lot of hyped "shitcoins" and took a significant haircut, losing about 25-50% on average. This reinforces the idea that pure speculation without research is currently a losing strategy.
* The current market isn't like the 2020 bull market (DeFi summer), where everything just went up. The presenter used to do small "temperature tests" with a few hundred dollars, and if things went well, they’d go all-in, which worked in 2020. That approach isn't viable right now.
* Live streams and community sharing are super valuable because they allow for real-time information exchange and help people make better decisions, just like how the presenter got the idea for their profitable USDC trade from a viewer's hint.

* Bitcoin's Current Status and Future Outlook:
* The presenter hasn't panicked or added to their Bitcoin bags recently. They've held their main Bitcoin holdings since 2020, only using them for DeFi farming to earn yield, not selling.
* Bitcoin is showing a lot of resilience, but there are still "weak hands" (people prone to selling during downturns) in the market.
* The narrative around Bitcoin has shifted over the years. Originally seen as a replacement for traditional finance (pre-2016), it's now often viewed as running in parallel or as a "tech commodity," which can confuse new investors.
* There’s an anticipation of a "major bank run" coming next week, specifically targeting major US banks heavily exposed to the tech sector. People will likely look for ways out – physical cash, gold, or Bitcoin.
* However, the presenter doesn't believe the Bitcoin bottom is in yet. They are waiting for a wave of "major negativity" to hit the market, as that will be their signal to potentially add to their Bitcoin portfolio. They feel people are still too emotional, and the panic from events like the USDC de-pegging, which was irrational, shows this.

* Tether (USDT) vs. USDC: The Stablecoin Showdown:
* When comparing USDC and Tether (USDT), USDC is seen as transparent, clarifying its collateral (cash and US Treasuries).
* Tether, on the other hand, is completely opaque. There's no clear idea of its regulatory entity, its accounts are a complicated web, and there's very little transparency or regulatory oversight.
* Holding stablecoins long-term is considered "horrific" by the presenter, as they often come with unknown risks.
* Tether has a history of massive "FUD attacks," often causing it to drop to around 90 cents. Those who are unaware get "wrecked," but savvy individuals who bought cheap Tether during these FUD events and cashed out into USD made a killing.
* The presenter suspects Tether probably has exposure to now-troubled crypto-friendly banks like Silvergate, Silicon Valley Bank, and potentially Signature Bank, but it's impossible to verify due to Tether's lack of transparency.
* Despite these concerns, the presenter isn't exiting Tether right now, acknowledging the difficulty of managing stablecoin collections in such an uncertain market.
* There's a strong belief that the USDC dump was a 100% coordinated FUD attack, potentially by those close to Circle who could profit by withdrawing USDC at $1 after pushing its price down. It's crucial to be aware of the mix of actual good information and intentional FUD in crypto.

* Future Content & Community Engagement:
* The presenter is excited to restart live streams and is asking the community for feedback on how often they should stream (daily, weekly, twice a week).
* They’re also experimenting with new video formats, like infographic-style videos using stock footage instead of always showing their face, and trying out YouTube Shorts. They welcome feedback on these new formats, as some viewers have had "lukewarm" reviews, liking the simplicity but disliking the stock footage.
* A new initiative, "Box Mining Testnet," is being spun up to create quick, 5-minute news segments. The goal is to provide a concise summary of the top 4-5 headlines so viewers can quickly decide if they need to act on the market that day.
* They are really trying to grow the channel and emphasize that audience engagement (likes, shares, subscriptions) directly helps the YouTube algorithm recommend more of their content, which they greatly appreciate.

In essence, the crypto market is a tricky beast right now – not too hot for DGENs, but not safe for the overly cautious either. Understanding market sentiment, staying informed, and recognizing opportunities born from irrational fear are key to navigating these turbulent times.

Transcript

Live and we are live guys so welcome back to another live episode of Vox Mining And yeah, it's a Sunday morning for me over here and I just wanted to give you guys a quick update Now that I'm back in stream mode, it's actually really fun actually to be honest So I'm actually kind of enjoying this and I want to do a very chill session today because the markets are actually not bad The USDC has kind of come closer to pay, we, you know, yesterday when we were looking at this This was the craziest ...