You all have already seen the SVB led fiasco of USDC, trading at its lowest price in entire history and on a downfall. ($0.89 at the time of writing this post).
What happened? A bank (Silicon Valley Bank in this case) messed it up on managing cash that triggered a series of havoc including USDC’s reserve exposure and that led to full blown sell off (“bank run”) on USDC. USDC de-pegged and nobody knows where the floor is. Now, it will hurt all investors – institutional to brokers to retail but unfortunately, the retail would be hit the hardest because there was no heads-up and time to cut a deal or swap funds.
So once again, a Bank messed things up and Retail investors got screwed. There is nothing new in this. As long as money is under a centralized body govern by another centralized body for a bunch of centralized bodies – repeated occurrence of this fate is certain. What happened in 2008 financial melt-down and many many times before.
I think we need to go back to the roots of the genesis of Bitcoin, we need to stop shitting ourselves on random shit (chain maximalism, DeFi, NFT….all shorts of things) and focus on bigger picture. We need to reinvigorate that feeling and energy that as long as disproportionate amount of control of money is in the hands of these centralized bodies, retail will keep getting screwed. Moreover, we need more visibility and accountability (not SEC regulation shit but real mathematical visibility and validation into on chain assets, transaction and risk exposures )
As a crypto community overall, I think we need to stop fighting on our own differences and advance the common vision – a truly decentralized money. That’s the only way anything can happen. SEC can’t protect Retail, we can. We can protect ourselves.
submitted by /u/Sharp_Tank05