Can a STABLE COIN de-peg? Is it possible?

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Ralph Chua is a publisher. He is passionate about NFTs and blockchain technology. This website is curated with content from his favorite source of information. He created this website with the intention to stay up to date with the ever-evolving and groundbreaking NFT industry.

Um we saw something that we thought like It was the stable coin is the stable Coin usdc Um well known you know for for holding Its pick holding its value of one to the Dollar Um and and we saw that deep egg we saw It going all the way as low as 88 cents And uh which is crazy to see and and the Reason behind it is that they had some Exposure to Silicone Valley Bank they Had 3.3 billion of their Reserve Um in Silicone Valley bank and then as We covered in last week's show Silicon Valley Banks Um I was you know we didn't know that stage That they were going to be bailed out And and they were really the the bank of Um you know these type of venture funds And all these type of technology Companies if you had a technology Startup you probably had a bank account With it with SBB and the nice thing About them was they were actually a very Big Whip too back before crypto at all I Mean they were normal back there top 16 Bank in America Um and they were just well favored um Because they were in San Francisco where All of this happened Um and all of these sort of venture Firms were they were well known for Being very friendly to

Um technology companies Um so a lot of people were affected by This but then we had the government come Out and they said look anyone who had Any money with svb whether they be a Person or a company that money will be Underwritten by the government so if you Had a million dollars in svb you can Withdraw million dollars the government Will make sure now remember by default You only covered up to 250 000 Um if you had so if you had two and a Half million dollars there you could Have effectively lost everything except For 250 000. so in a roundabout way the Irony is that the US government By Saving sbb's deposits and Underwriting them Actually ended up bringing usdc back to One to one so even though government's Been so anti-crypto they they had to say This maybe because if they don't Underwrite those deposits there would be A bank run on all the banks in America And everyone will be in massive massive Trouble the government can't afford for That to happen now the irony also is That they've been printing in the last Week And we've got the FED printing again two Billion dollars again has been put back In by them underwriting this Um and we've literally gone from a stage Where we were tightening

Um all the way back to pre-covert or or Just when covert happened where we're Printing again and that's really why We're seeing the crypto price doing what It is doing at the moment and being so Bullish because this is a when the FED Started printing during covert that was The beginning of Bitcoin 10xing and That's what's happening now and that's Why we're seeing this happening now it Happened really quick people were Thinking that the interest rates would Be cuts of matter you know hiked another 50 basis points this time around now People are saying the property will be No hike and if anything it might be even Cut so we've pretty much in the last Seven days completely turned over from Where we were and that's really quite Bullish for crypto we've turned a corner In effect Dude Um I made some content about this whole Government bailout stuff I love just I Just love uh broken content because There's just so many ways you could go You know when they said they're gonna Bail out all the banks too I was like Damn A lot of money you're gonna bail out on The house gonna happen they're like Taxpayers like taxes and I was like What those taxes like I don't know about That dude um so I don't know I would be

Very interested so they specifically They specifically said it's not coming From from taxpayer money on the US they Specifically said that So it's coming out of the Insurance Fund That's four bags specifically Underwritten by the FED whether because Of this the banks have to pay higher Premiums going forward That will eventually be passed on to the Banking customer that remains to be seen But they specifically said that it's not Going to be from taxpayer money Do you hear that I hear um I hear like a printer you're a printer Somewhere guys If you're enjoying this show please hit That retweet button and if you're in YouTube hit the comments to like Subscribe to Phillips Channel by the way If you're enjoying this conversation Because this is a fun one it's I mean It's fun every single [ __ ] week Honestly but dude the idea that the Government can just keep doing this kind Of stuff saying oh like we'll just pay It off later I'm like bro you're already 45 billion trillion dollars in debt what Do you mean you're gonna pay it later You've never paid off anyone ever like You're already trillion dollars in debt Like that doesn't even make sense I'm Down though I'm down for them to give me

Money too like Ubi like listen sign me Up bro I don't know how's any I don't Know how it's gonna happen I'm sure my Life will get tremendously worse once I Sign up for all the the conditions that I have to meet to get an extra thousand Bucks a month but I'm excited man I'm Excited for well I don't know if the Excise the right word but I'm looking Forward to seeing how the world develops And changes over the next five years Listen this is not so positive in General I mean because this is the Reason that we had all the talking for The last year was because they printed Money like they doing now again and that That devalued the dollar the real value The dollar which is not good for the Average consumer it's good for crypto And you go for Bitcoin specifically Because you know bitcoin's whole thing Is that they've they've got a limited Supply there will only ever be I think It's 2.1 million Bitcoins or whatever it May be Um and and and they can't print more so So I don't understand why it has to be So extreme why do they have to you know Print so much during covert that almost Half the total American dollar supply Was printed in a couple of weeks and Then they have to so sharply hike rates And until they break every single bank And now they have to quickly start

Printing trillions of dollars again why Does it have to be so extreme why can't It just be slower and more cautious and Less crazy it just makes it volatile and The one person who was buying usdc when It depicts was the vitalik return the Ethereum co-founder Um if you follow his wallet he was Buying buying buying a lot wow wow at What number So he wrote at a five percent discount Whether it was 95 cents he bought 286 000 dollars Um when it was 95 cents He then did two transactions for twenty Eight thousand dollars when it was a Seven percent discount And then he took another I mean it's not Huge money when you think of how much The guy has and then he took a total of 85 000 when it was a 12 discount so you Can see even he was starting to get Worried he slowly was taking less and Less as it went lower and lower Um but yeah man it just shows you I mean That the right move to do there if you Ever see something like a usdc depicting Again the right move to do if you know How to do it is to just short it because The chances of it going to 1.1 is Nothing it's never going to be worth More than one so you put a stop loss at One dollar winner gets back to normal Everything's good but you shorted you

Say as it goes down I want to make money So your downside is that it hits the Dollar again which it will do at some Point and you get stopped at maybe if You shorted it from 98 cents you you Lose two percent if it goes to a dollar But if it carries on dropping and it Drops all the way to 88 cents like it Did you are upside right is you made a Huge amount of money you but you 10x Pretty much you got 10 10 times the The Leverage that you would have got on the Downside so that was the play the play There if you know how to do it which I Need to learn because I don't it's to Have shorted as soon as you saw it Depending With a stop loss yeah that's I mean dude I'm I'm literally learning trading stuff So all these words I'm like damn I've Been hearing a lot of this stuff Recently so I'm excited for myself to be Trading but you're very I think you're Very much on point right there Official All right and then we've got his

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