In March, Circle’s USD Coin (USDC) supply shrank by over 23% to $32 billion as the stablecoin struggled with its exposure to the U.S. banking crisis.
USDC’s trouble began on March 11 when it was revealed that $3.3 billion of its reserves were held at the failed crypto-friendly bank Silicon Valley Bank. Following the news, USDC depegged to as low as $0.87 as investors trooped for its rival.
The stablecoin soon regained its peg after its issuer assured users it would cover any shortfall. But that did not restore investors’ confidence, who massively redeemed their USDC holdings, leading to a $10 billion outflow.
During that period, the issuer dealt with a malicious player who tried phishing its users. The hacker hacked the Twitter account of Circle’s chief strategy officer and head of global policy, Dante Disparte, promising a fake airdrop for affected users.
