I'm not a financial advisor. None of this is financial advice.
So, no doubt everyone was nervous about the USDC depegging event a week ago. I certainly was.
But here's why: I work in the industry and one of the companies I work for has a treasury in USDC. Last weekend I was looking at the charts for a stablecoin that was created by a company that was "playing by the rules" and had made no wrong moves.
People at the company floated the idea of using other stablecoins, but noted that the situation wouldn't be that much better if we went with tether.
But the thing is, I started thinking about, "Well, what if USDC depegs again, but the depeg is longer-lasting? People will lose confidence in the idea of a properly-collateralized stablecoin."
That's why I think bitcoin started pumping this last week. When you trust a stablecoin you're trusting two parties; 1 - the blockchain it's on as well as... 2 - the method it uses to match itself to the USD.
Maybe my thesis is wrong. We'll find out soon enough.
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