The world of cryptocurrency experienced a jolt today as news broke that Stablecoin USDC had broken its dollar peg after revealing that $3.3 billion was held at Silicon Valley Bank. The announcement caused the value of USD Coin to fall, leading to panic among investors. Tech and crypto experts are now pointing fingers at one another, with some blaming Silicon Valley Bank for not disclosing its exposure earlier, while others argue that the potential depeg is not a reason to panic.
One company caught in the fallout is Roblox, which revealed that around 5% of its cash was held with Silicon Valley Bank. However, the gaming company was quick to reassure investors that there would be no impact on its operations. Meanwhile, the New York Times has reported that the collapse of Silicon Valley Bank has set off a “blame game” between the worlds of cryptocurrency and tech.
Despite the turmoil, some experts are urging caution. Writing in CryptoSlate, one op-ed argued that the potential depeg is not a cause for panic, and that there are still plenty of reasons to remain bullish on cryptocurrency. As the situation unfolds, investors and tech experts will be keeping a close eye on the fallout from today’s announcement.