Bankrun a stablecoin

In December of 2022, most of the crypto capital market was reacting to the fallout and fraud of FTX. Everything was being stress tested and it felt like every week a new domino was falling in the form of an exposed fund or business. Trust was definitely at a local min.

I took some time to think through what massive redemptions of USDC into cash might look like and what the impact on markets might be:

EDIT: In March 2023, a group of 20+ US banks experienced bank runs, leading to the failure and of Silicon Valley Bank and Signature Bank. SVB's failure was the 3rd largest bank failure in US history. Of the $40 billion in cash + t-bills backing USDC, Circle held nearly 10% at SVB, creating market panic (and opportunity) with USDC depegging to ~$0.85 USD.