Coinbase just suspended selling USD Coin. Massive selloff drains Curve pool.
2 min read
At the time of writing this, Curve 3pool USDT reserve is completely drained as a result of massive USDC selloff:
Only a few hours ago, the liquidity was pretty balanced, though you could see the trend starting:
Token has slightly depgged and trading at %93 of USDT on Uniswap:
Coinbase who has a big stake in Circle (issuer) and has been promoting it for a long time with zero fees just tweeted this:
This means no one can sell their coin over the weekend at least. They have the nerve to act like banks being closed on the weekends is a new thing. Obviously Coinbase is afraid of the massive selloff that has already started as result of Silicon Valley Bank and Silvergate Bank going down. Circle held a massive cash reserve in both and failed to withdraw at least a portion of it from SVB:
At the time of writing this the coin has slightly depegged. If you have liquidity pools with it, expect people to drain your other token and leave you with 100% USDC in your pool. The depegging will get worse since all the liquidity is being drained. Though it is not the first time its depegged, in the middle of all the banks going down, it seems more serious than before. Stay safe and may the market survive this weekend!
submitted by /u/DystopianFigure
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