Over the past week, investors are understandably uneasy about the news that billions of dollars in USDC, the second-largest stable currency, have been locked in the desperate Silicon Valley Bank (SVB). The sales market reacted so violently that USDC chose to abandon its exchange rate rules and regulations pegged to the dollar. But while such concerns are understandable, it is clear that USDC Creator Circle will regain full ownership of its assets. The password community can easily inhale.

At first it was a shock.

Hundreds of sensors are buried at the bottom of the sea around the Gulf of Japan. They were trained to detect the slightest signs of vibration and transmit data to the main island laboratory at the speed of light. If the fault lines of the bifurcated seabed collide strongly, seismicity is detected, giving fishermen the most precious time to evacuate to the fortress before the tsunami strikes.

Last week, seismographs, which record the health of accounting software in the US banking system, gradually produced jagged lines. There is a crack in the deepest part of the surface, and it is very obvious that the inconvenience is coming. On Friday, it was reported that Silicon Valley banks, which rely on more than 100 high-tech start-ups, including password companies, have already run out of cash. The resolution message sent the night before could not be implemented.

Not long ago, with the bankruptcy of Yinmen Bank, the seismograph has already detected the improvement of theme activities and has gradually shaken. It is clear that the tsunami is under consideration. Last week, as Bank of America collapsed, SVB customers waited nervously for a bailout plan to secure his savings, and large companies were under great pressure to announce their shareholdings.

Circle, a foreign investor in USDC stablecoin pledged by 100% Fiat, is one of them. On Saturday, it issued a statement confirming that the $40 billion used to support USDC includes $3.3 billion owned by Silicon Valley banks. Instead of reassuring investors that most of Circle's assets are safe, it has the opposite effect: investors' confidence in USDC is wavering, while the steady currency, which has been firmly pegged to the dollar over its four-year life cycle, is falling.

People are clamoring to be bearish on USDC, the main derivatives trading service platform, and thus set up a dedicated sales market. Arbitrageurs gradually profited from price inefficiencies as panicked USDC holders sought refuge in other relatively stable stocks at all costs, but other stable stocks, such as USDC guaranteed FRAX and DAI (DAI), lost their links. It was obvious that there was a rough sea coming towards the shore in the right direction.

Rumors about the decline of USDC are overrated

Although SVB shareholders have no plans to accept aid, the US government has announced that it also provides commercial insurance for uninsured depositors of the financial institution. A circle will be fine. But what about USDC? Last week, the once relatively stable tokens plummeted to the bottom of $0.88, and traders tried to charge insufficient USDC collateral to the price. As of March 13, USDC had warmed up to the range of $0.99 to $1.01.

But as the curtain comes to an end, the conundrum pervades not only USDC, but also all relatively stable currencies, and whether there is a level of influence linked to the dollar. The anxiety surrounding Silicon Valley banks is coming to an end. Today, the cryptographic field has an obligation to regain recognition of smooth passwords, which are the foundation of the industry. "No trust, authentication" is the key slogan of Crypto. But although it has every direct evidence of data encryption, it is still a faith-based project, just like TradFi.

If it hadn't developed into a magnitude earthquake, the vibrations caused by Circle's exposure to SVB would have reverberated in the cipher ball. Achieving stability in an unstable world is a bigger challenge than passwords. Avoiding the systematic impact of the future requires us to re-examine the mission that we once thought could never be wrong.

Gracie Chen is the managing director of the cryptocurrency exchange Bitget where she covers matters of market expansion, business strategy and corporate development. Before joining Bitget, she held executive roles at XRSPACE, a VR technology company, and was an early investor in BitKeep, Asia’s leading decentralized wallet. In 2015, Gracy was named a Global Shaper by the World Economic Forum. A graduate of the National University of Singapore, she is earning an MBA degree at the Massachusetts Institute of Technology.