Mar 12, 2023
Investor Loses $2M Over USDC Depegging
The crypto market took a massive hit in 2022, as the Terra (LUNA) and TerraUSD (UST) ecosystem fell into a death spiral and caused losses in the millions. Investor sentiment was damaged, and the regulatory spotlight over cryptocurrencies was intensified. In response to this, Binance CEO Changpeng ‘CZ’ Zhao recently stated that traditional banks are a risk to stablecoins, which are usually pegged 1:1 with fiat currencies like the US dollar.
This statement was made in response to the depegging of Circle’s USD Coin (USDC), which occurred on March 11. On this day, Circle disclosed that Silicon Valley Bank (SVB) had not processed its $3.3 billion withdrawal request. In response to this revelation, the crypto market sold off their USDC holdings, causing the US dollar-backed stablecoin to lose its peg. CZ blamed banks for increasing the risks of stablecoins, and highlighted the defunct algorithmic stablecoin launched by Do Kwon, saying: “Do Kwon actually had the right idea, but just failed miserably on execution.” CZ also stated that fiat currencies — in themselves — are a risk without getting crypto into the equation.
Due to the instability of USDC, many investors decided to sell their holdings to avoid losses. Unfortunately, one investor made a hasty decision that led to a loss of over $2 million. Instead of selling their USDC holdings in a liquidity pool for a 6% slippage, the investor chose to go for a “questionable” method that eventually led to a maximal extractable value (MEV) bot netting $2.045 million in profit after paying $45 in gas and $39,000 in MEV bribes.
With USDC instability fears rampant, many investors are looking for alternative ways to invest in crypto. One way is to invest in NFTs (Non-Fungible Tokens), which are digital assets that are unique and not interchangeable. NFTs are becoming increasingly popular, and many investors are turning to NFT marketing agencies to help them promote and sell their NFTs. NFT marketing agencies can provide a wide range of services, such as creating promotional campaigns on Twitter, creating NFT-specific websites, and helping to list NFTs on popular marketplaces.
Despite the risks associated with investing in cryptocurrencies, many investors are still looking to take advantage of the potential rewards. Although the USDC depegging was a reminder of the risks associated with investing in crypto, it also showed that investors should be aware of the potential rewards associated with investing in NFTs. With the help of NFT marketing agencies, investors can now promote and sell their NFTs, and potentially reap the rewards.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.