Silicon Valley Bank shuts down. Domino effect on banks, technology and cryptos. No respite for Bitcoin and Ethereum. Coinbase, Binance and Robinhood suspend USDC stablecoin conversion.
The Silicon Valley Bank has been shut down. It was the Silvergate Bank the other day. They are caving in. With them starts the tech turmoil, of the proportions we have not seen in the recent past. It's just the beginning.
The California Department of Financial Protection and Innovation (DFPI) has ordered the closure of Silicon Valley Bank over the bank's risk management and compliance practices. The fintech-focused bank that primarily serves startups and venture capital firms has been given 30 days to wind down its operations and transfer its accounts to another financial institution.
For perspective, read this thread by Y Combinator president and CEO Garry Tan. It's real. It's going to hurt.
On February 8, 2023 - Jim Cramer wanted investors to buy Silicon Valley Bank stock $SIVB, saying it was "still cheap" and has "room to run." At the time, SVB Financial was trading at $320.40 a share. We are here now.
We all know what these banks meant for crypto. They were their bankers. When the banker goes bust, it spells trouble. The biggest of them all has been Circle, the issuer of USDC. Circlehas $3.3 Billion of its $40 Billion of USD Coin reserves at the collapsed lender Silicon Valley Bank. Coinbase, Binance, Robinhood have suspended USDC conversions. It's a contagion.
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the banks are the contagion? the moment they spun off crytpo etfs ... we knew what we were in for.