I think the market is stupid on this one. I would buy USDC on a discount if I had the liquidity on hand. I have been wrong before, but this looks like an overreaction.
Not necessarily. As more businesses start exchanging USDC for USD with Circle the ratio between the reserves and USDC will get worse and worse. If a bank run happens 3.3 billion will become a big percentage of the total market cap and USDC will go to $0. The value of USDC right now is a combination of how much of that $3.3 billion will be recovered, how likely people think a bank run on USDC is, and predicting what actions Circle will take to try and save this.
Do centre have equity to backstop the reserve? I'm not 100% sure how the centre/circle/coinbase partnership works