Stablecoin CRACKDOWN!! This is What The FED Says!!
Published: 2023-10-07
Status:
Available
|
Analyzed
Published: 2023-10-07
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
USDC experienced a depeg event in March of the current year (2023).
"usdc deeg in March this year"
Pending
Over 10% of USDT is backed by money market funds.
"tether's most recent Reserve attestation more than 10% of the usdt in circulation is backed by money sitting in Money Market funds"
Pending
Over 90% of USDC is backed by a money market fund managed by BlackRock.
"over 90% of the usdc in circulation is backed by money held in the circle Reserve fund a money market fund managed by asset manager Black Rock"
Pending
BUSD and USDP have reserve compositions similar to money market funds.
"notice how B USD and usdp have similar Reserve compositions to money market funds"
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After the USDC depeg, USDT and TUSD market caps increased, while BUSD and USDC continued to decline for months.
"the market caps of usdt and TUSD increased significantly after the dpeg with bu USD and usdc continuing to fall for months"
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BUSD and USDC experienced a decline in market cap for several months following the March depeg event.
"with bu USD and usdc continuing to fall for months"
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BlackRock stands to gain billions if the circulating supply of USDC increases.
"black rock could gain tens of billions if usdc circulating Supply increases"
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The SEC is expected to approve Bitcoin ETFs only after most of BTC's trading volume moves onshore.
"it's believed the SEC will only approve it once most of btc's trading volume has come on Shore"
Pending
A significant portion of stablecoins are backed by money market funds.
"a large portion of the stable coins in in circulation are technically backed by money held in Money Market funds"
Pending
The total market cap of stablecoins grew from $5 billion in 2019 to over $125 billion by April 2023.
"the total market cap of stable coins has skyrocketed over the last four years from $5 billion in 2019 to over $125 billion in April this year"
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96% of the total stablecoin market cap consists of stablecoins backed by traditional assets.
"a whopping 96% of the total stable coin market cap is made up of stable coins backed by traditional assets"
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The money market fund market has grown to $5 trillion, nearly doubling in the last decade.
"money market funds have grown to $5 trillion up almost 2x over the last 10 years"
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Money market funds backed by US government debt have seen a 5x increase in assets under management over the past 10 years.
"the money market funds backed by US Government debt have grown their assets under management are up about 5x over the last 10 years"
Pending
During crypto market stress, algorithmic and crypto-backed stablecoins see outflows, offshore stablecoins see smaller outflows, and US-based stablecoins experience inflows, indicating a flight to quality.
"algorithmic and crypt back stable coins experience large outflows while offshore stable coins see smaller outflows conversely onshore stable coins those based in the US remember experienc inflows signaling a flight to Quality"
Pending
Following the collapse of Terra US, algorithmic, crypto-backed, and offshore stablecoins experienced significant outflows, while onshore stablecoins saw substantial inflows.
"algorithmic Crypt back and offshore stable coins saw enormous outflows with onshore stable coins experiencing enormous inflows"
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US-based stablecoins face a high risk of regulatory action.
"us-based stable coins are at high risk of a regulatory Crackdown"
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On smaller blockchains, inflows and outflows are consistent across stablecoin types, suggesting that crypto holders perceive these blockchains as inherently riskier during stressful periods.
"smaller blockchains however the inflows and outflows are the same regardless of the stable coin type in other words crypto holders perceive smaller blockchains to be inherently riskier during times of stress"
Pending
Stablecoin holders begin to panic and consider it an official depeg when a stablecoin's value drops to $0.99.
"based on the available data the authors determined that stablecoin holders start to panic when a stable coin Falls to 99 in their opinion this is what counts as an official stable coin dpeg"
Pending
A depeg to $0.99 results in approximately 3% outflows from stablecoins.
"a 99 C dpeg only results in outflows of around 3%"
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Stablecoin holders are considered less prone to panic compared to money market fund holders.
"stable coin holders are less prone to panic than money market fund holders"
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If stablecoins continue to grow and interconnect with financial markets like short-term funding, they could pose a risk of financial instability to the broader system.
"should stable coins continue to grow and become more interconnected with key financial markets such as short-term funding markets they could become a source of financial instability for the broader Financial system"
Pending
The SEC may soon initiate regulatory action against US stablecoin issuers.
"this means that the SEC could soon come knocking on the doors of us stable coin issuers"
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In the event of a disruption to offshore stablecoins or a general crypto market crisis, onshore stablecoins like USDC are positioned to benefit.
"if there was a disruption to Offshore stablecoins or even just a crypto Market crisis of some kind then onshore stable coins like usdc stand to benefit"
Pending
Regulatory scrutiny on stablecoins is intensifying.
"the regulatory scrutiny of stable coins is increasing again"
Pending