The cryptocurrency market is no stranger to volatility, but the recent loss of USDC (USD Coin) pegged to the U.S. dollar sent shockwaves across the industry. Many traders and cryptocurrency users wonder if recent advances in artificial intelligence can help them prepare for and respond to such sudden market shifts.
Silicon Valley Bank (SVB), a financial institution specializing in credit facilitation, investment management and corporate banking solutions for technology-enabled entities, collapsed on March 10. This was sparked by massive panic among its users, which led to an unprecedented bank run that resulted in the loss of most of its deposits. Due to this financial difficulty, SVB was eventually shut down by the California Department of Financial Protection and Innovation, which had far-reaching ramifications for various sectors, including the cryptocurrency community.
USDC loses its peg
At the time of SVB’s debacle, Circle, the developer of USDC, stated that the project had USDC reserves in SVB banks. This caused widespread speculation among users, leading to withdrawals and subsequent price drops from $1. As a stablecoin, USDC should maintain a 1:1 peg to the U.S. dollar, and moving away from $1 indicates concerns about its financial fundamentals.
What is Avorak AI?
Avorak is an artificial intelligence project running on the blockchain. It combines these technologies to provide solutions for traders, content creators, and many other professions. The AVRK token is used to access these Avorak services and is currently offered in Phase 2 of its ICO for $0.105.
A recent YouTube video by Alien Crypto and Crypto Epoch highlights the list of products, services and benefits offered by Avorak AI. For example, content creators can benefit from Avorak’s auto-correction, editing, and plagiarism-free text. Avorak also offers language-to-art models, ensuring unlimited output and automating video and image mechanics.
How is Avorak AI helping traders during this crisis?
The collapse of SVB and the resulting loss of the USDC peg highlights the importance of having reliable and efficient trading tools during a crisis. That’s where Avorak’s AI-powered trading bots come in. Avorak’s AI-powered trading strategies quickly and accurately identify opportunities and capitalize on profitable trades. Simplified command line entry and programmable scripts make it usable by traders large and small. Additionally, Avorak Trading’s advanced algorithms and metrics enable it to identify patterns and detect anomalies in data sets, providing deeper insight before potential problems occur. In addition to linking to services such as TradingView for easy visualization, Avorak’s trading API will be able to generate a large number of indicators for traders, while using an overlay and notification system to alert users to trends or pattern changes.
USDC’s peg losses are similar to the events that sent TerraUSD (UST) down last May. Technologies such as Avorak’s machine learning allow traders to have more sophisticated artificial intelligence trading bots that evolve as they learn from past experience. So, with Avorak AI, traders can have the confidence and tools to navigate the most volatile markets.
The recent unpegging of the popular stablecoin USDC and the collapse of Silicon Valley Bank (SVB) sparked ripple across the cryptocurrency market. These events highlight the fragility of the cryptocurrency ecosystem and the need for tools that can help traders during such crises. Avorak AI’s ability to analyze complex market data and provide actionable insights can help traders navigate even the most challenging market conditions, making it a valuable asset to the trading community.
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