USDC Investor Receives $0.05 USDT to Avoid Crash

Whether exchanging USDC for fiat currency or other cryptos, investors are encouraged to double-check the information and transfer procedures.

As soon as Circle disclosed that Silicon Valley Bank hast not transferred $3.3 billion of its USD Coin holdings, the market reacted with a large sell-off, decoupling the stablecoin from the US dollar.

Despite the uncertainties, not all investors were able to walk away with their investments.

Safeguarding a $2M USDC Portfolio Amid Market Volatility

To prevent lasting losses, investors began selling their USDC tokens in exchange for alternative stablecoins, such as Tether.

Regrettably, a Crypto Twitter user with the handle BowTiedPickle brought attention to a transaction that reveals a USDC investor spent more than $2 million to obtain $0.05 of USDT.

Investigations on the blockchain showed that the user had put the assets in a liquidity pool (LP)—a common way to earn cryptocurrency.

With 6% slippage, the user could have sold his LP tokens for USDT. Yet they adopted a ‘questionable’ approach.

According to BowTiedPickle:

“The unfortunate soul used the KyberSwap aggregation router to dump a large clip of 3CRV (DAI/USDC/USDT) LP token into USDT.”

Due to the time crunch, the USD Coin investor neglected to specify his slippage, which allows investors to establish an accurate price for the token before the transaction can proceed.

He elaborated on the different subtleties that ultimately resulted in an MEV bot earning $2,045,000 after spending $45 in gasoline and $39k in MEV bribes.

This incident illustrates how human mistakes may result in irreversible financial loss.

Whether exchanging USD Coin for fiat currency or other cryptocurrencies, investors are encouraged to double-check the information and transfer procedures.

Immediately after Circle verified that $3.3 billion was trapped in Silicon Valley Bank, a sell-off of USDC led to the stablecoin’s value falling below $1.

At the time of writing, the USDC was trading at $0.8774, a loss of nearly 10%.