Non-Fungible Business #7: When a bank fails...??

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It was a decidedly busy weekend with the bankruptcy of?Silicon Valley Bank, one of the largest banks in the US with a decidedly close relationship with the world of start-ups and crypto companies.

In particular,?$USDC loses its peg with the dollar?and a series of disastrous chain events for the crypto industry and the startup world are looming.

But what is $USDC?

USD Coin (USDC) is a type of cryptocurrency called stablecoin. Due to the stable price, it is always possible to redeem 1 USD Coin for 1 USD thanks to the high-quality guarantee and transparent monthly reports.

This guarantee of redeemability was called into question by the bankruptcy of Silicon Valley Bank because part of the reserves was actually held in SVB.

This was the reason for the $USDC's deviation from $1.

But, then, the?FED?steps in and announces that it has?created a $25 billion emergency programme to support all deposits in banks,?even for accounts above the required coverage.

It will also make additional funding available for eligible institutions.

And $USDC recovers the peg to $1 and the threat seems to have vanished.

And many are reminded of the consequences of the 2008 crisis, the biggest financial crisis in recent years.

And to me, this brings to mind the?Bitcoin?white paper that was born precisely in the light of the financial crisis with the stated aim of wanting to create a decentralised system immune to this type of crisis.

And this time too, Bitcoin has demonstrated a strong resilience and immunity to this kind of crisis.

And there is another asset that is immune to crises and price fluctuations: over the past nine months, despite the?crash of Luna, FTX and the Silicon Valley Bank, the floor price of the?Cryptopunks has remained essentially stable at around 65 ETH.

Speaking of NFTs again,?Starbucks?released the first collection of Stamps:?2,000 NFTs sold out at $100 each that sold out in 20 minutes and are?now being traded?on the secondary marketplace?at over $500 each.

The coffee company first launched its NFT and Web3 push in December, when it opened up a new membership program called?Starbucks Odyssey.

An extension of the existing Starbucks rewards program?that gives customers perks like free drink upgrades,?Odyssey?promises to deliver?new benefits and “immersive coffee experiences?that customers cannot get anywhere else” as members complete games, quizzes, and make purchases.

Rewards might include virtual classes, access to merchandise, or a trip to a Starbucks coffee farm at higher membership tiers. Purchasing an NFT gives members additional “points” that they can use to level up their tier.

This a great example of how brands can create loyalty programmes with assets that gain value over time, creating that special relationship between consumer and brand that I have often talked about here.

And finally, I have already told you about?Cozomo de' Medici,?the grand patron of crypto art, and?NFT Rome 2023, the event I am organising.

Also over the weekend, the two came together because?Cozomo's newsletter featured a street performance of crypto art by my 'partner' Luca (aka Vandalo Ruins)?from which my participation in the organisation of NFT Rome started.

Luca is a great talent, with a great passion for NFT and web3 and I am sure will leave his mark on the ecosystem.

He is?young, talented and has that mix of passion and creativity that we Italians have in our DNA.

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I’m Michele Imbimbo (@ducati.eth), the founder of?Stargraph, a Web3 boutique that, since 2017, has been working on helping brands to understand and use digital assets to increase the company valuation. I’m Italian, love Ducati, play sports, have 2 wonderful children, and I invest a portion of my earnings in NFT projects to support artists, to forge new relationships, for the beauty of some of the arts, and because I am convinced that NFTs are here to stay for a long time.