Every crypto investor’s nightmare starts when a sudden change in the industry leads to panic and massive selloffs. The effect of these two occurrences usually leads to uncontrollable price dips and deep losses for investors.
An example of such an event is the news that Circle couldn’t withdraw its $3.3 billion from Silicon Valley Bank. Notably, the bank was shut down by the California Department of Financial Protection and Innovation.
As the news broke, massive selloffs followed, causing an unlucky investor to lose deeply in a failed transaction.
Deep Loss For Crypto Investors
The issue started when crypto firm Circle announced it hadn’t received a wire transfer of $3.3 billion from Silicon Valley Bank. As soon as the announcement went out, many USDC investors panicked and started withdrawing. As a result, the USDC stablecoin depegged from the US dollar.
While some investors were fast enough to exchange their USDC for…
