The closure of SVB, Silvergate, Silvergate Exchange Network, and Signature adds stress to a troubled crypto industry; fiat conversion costs may rise by 20%-40%
The digital-asset market is coming off of a turbulent year featuring a number of high-profile blowups.
Two things Silicon Valley, Signature and Silvergate all had in common other than the first two letters of their names: - Concentrated exposure to tech/crypto - Rapid growth in deposits As @John_Hempton said in an Odd Lots, there's nothing more dangerous than a fast-growing bank
The Regime has picked their scapegoat and sent out talking points to its comms teams. Don't believe their lies. This is failed interest rate policy and regulatory oversight, nothing to do with crypto. The only true “crypto bank” was assassinated last week with full reserves. http…
It's unfortunate to witness another crypto-friendly bank shut down, but we're relieved that depositors at #SVB and #Signature are safeguarded. It's important to note that #SignatureBank has no impact on KuCoin. We'd like to reassure our community that their funds remain secure.
It's not that these banks had a concentrated exposure to tech/crypto clients, as much as both industries had a surge in deposits/investments during ZIRP & the banks' just weren't on the radar of regulators. It was on the Fed to check which FI were effected by falling bond prices …
lessons i'm learning from crypto - don't store money in banks - don't store money in defi protocols - don't store money in crypto for that matter - it doesn't matter, you don't have any crypto left
Given Signature/Silvergate failures, any bank doing any sort of crypto-related work poses a systemic threat and faces a 24-7 regulatory colonoscopy. If there is no way to cash-in casino chips after gambling, people will stop going to casinos. Bye crypto. https://news.yahoo.com/..…