30 Burst results for "Silvergate Bank"
Unchained
A highlight from The Chopping Block: Why Circle CEO Jeremy Allaire Is So Optimistic About Stablecoins' Future - Ep. 541
"There's going to be a new law in the United States for payment stablecoins. And payment stablecoins are going to be legally defined as cash equivalent, digital cash instruments in the US financial system. And when that happens, that's a great thing. And it will create a consistent, clear way for a very vibrant competitive market to emerge. Not a dividend. It's a tale of two quants. Now, your losses are on someone else's balance sheet. Generally speaking, airdrops are kind of pointless anyways. Unnamed trading firms who are very involved. DeFi protocols are the antidote to this problem. Hello, everybody. Welcome to the Chopping Block. Every couple of weeks, the four of us get together and give the industry insider's perspective on the crypto topics of the day. So first, quick intros, we've got Robert, the crypto connoisseur and Tsar of Superstate. Then we've got Tarun, the Giga brain and Grand Poobah at Gauntlet. Today we've got a special guest, Jeremy Allaire, stablecoin steward and CEO at Circle. And finally, you've got myself, I'm Asib, the head hype man at Dragonfly. So we are early stage investors in crypto, but I want to caveat, nothing we say here is investment advice, legal advice, or even life advice. Please see ChoppingBlock .xyz for more disclosures. Jeremy, we've been trying to get you on the show for a while. Great to finally have you here. How are you doing? How's life in crypto land? It's great. It's exciting. It's never dull. No, it's really good. It's really good. There's a lot. There's just, I mean, there's a lot going on. And obviously we'll touch on a lot of different things, but like I've been working in this for 10, 11 years and I've never been more optimistic about where we're at on so many levels. So I think it's a super exciting time. Last time I saw you, it must've been over six months ago, I think last time I saw you. And so I haven't seen you since the banking crisis, which I think, you know, everybody in this industry has had their kind of near death experience. And I think for you guys, that was probably the closest that you've had to having one of those. It obviously wasn't literally near death, but I think from the perspective of the market, everybody was terrified about what was happening. Give us, for those of us who maybe weren't paying attention at the time, give us a bit of a recap of like what happened and what you learned personally from going through that experience. Yeah, absolutely. You know, actually we've had multiple near -death experiences as a company over 10 years. So it's sort of life in crypto land, but in all seriousness, I mean, look, I think there's a few, like, first of all, important backdrops, which is that as an industry, obviously access to the banking system has been a challenge for virtually every company that's been in this industry for a long time. And there are lots of different reasons for that. In some ways, actually Circle's been really fortunate because we set out to be regulated and licensed and operate with a high level of compliance. I think a company like Circle has historically had really good access to the banking infrastructure that's out there. And that's a big part of what sort of the promise of USDC, obviously. And that comes from both what Circle does and also what Coinbase does and basically being like always having great both retail and institutional TradFi rails that connect the existing traditional financial system to stable coins and to digital dollars and what that is. So that's been a huge part of what's there. And I think coming as a company, we've always tried to sort of always up -level the infrastructure that sort of sits behind USDC. And so that's like a constant for us and we'll never be done. And I would talk about the future and what that looks like, but we for a very long time have been trying to up -level, who are the kinds of custodians that will hold cash? What is the transparency and rigor and protections of the underlying market infrastructure that sits behind USDC? And what's the redundancy basically of they're sort of like where money is held and then there's sort of the transactional layer, which is basically how can people who have access to the banking system, whether it's in the US or internationally, how can they really easily create and redeem USDC? And so we've always been trying to basically up -level that and have more and more redundancy. And as you kind of go back to the end of 2022 in particular, some pretty dramatic things took place, which have been talked about a lot in a lot of places. But it was really the end of 2022 that began many aspects of what became a broader sort of not just US domestic banking crisis, but also a broader, what I'll call de -banking crisis for the entire crypto industry. And so a huge starting point was basically the collapse of FTX and essentially the fears that existed that Silvergate Bank had some kind of like huge exposure to FTX. And that actually caused the first set of runs on Silvergate. And it caused a lot of companies to say, wow, well, we really feel exposed to just this hyper -concentration risk with a bank like Silvergate. And so you started to see people try and have more and we had already launched like redundancy. You had Silvergate, you had Signature. These were like popular US banks for providing kind of interoperability. At the same time, right, we had also been so we've been adding redundancies at the same time. Also, we're basically trying to up level the reserve infrastructure. So we made a huge partnership last year with BlackRock. And as part of that partnership, we created something with them called the Circle Reserve Fund. And basically that is it's operational today. It's been operational since basically late last year, but it was kind of fully operational coming into Q1, which is basically that there's an SEC registered and supervised fund that holds, historically, it was holding about 80 % of the reserves of USDC. Right now, it's about 95 % of the reserves of USDC. And so it's registered and supervised with an independent board, an independent audit, and it has protections that come from being an SEC supervised vehicle. Does that fund only hold the treasuries or does it also hold some of the cash? So I'll walk you through kind of where it is today. But effectively, initially, it was basically all holding treasuries. So that was sort of we had 20 % in cash, 80 % in treasuries. But the power of it is that basically not only is it this sort of registered structure, it has daily transparency. And so unlike any other dollar stable, at least in the world, you can go to the USDXX ticker to search in your search engine, and you can actually see down to every single instrument exactly what is there, exactly the duration, exactly any kind of counterparties that are embedded in that. And you can just see that. So very, very high level of transparency and the fund itself and the underlying security instruments are custodied with basically the safest custodian in the world, a globally systemically important bank that custodies over 25 trillion assets. So really, really strong market infrastructure that's there. So we've been moving to that.
The Breakdown
Binance Accused of Co-Mingling Customer Funds With Company Revenue
"Hello friends. Well, this morning as I was prepping the show, news broke from Reuters. Walter Bloomberg on Twitter said, the world's largest cryptocurrency exchange Binance co -mingled customer funds with company revenue in 2020 and 2021. In breach of U .S. financial rules that require customer money to be keep separate, three sources familiar with the matter told Reuters. So let's go through this, let's try to get a sense of how serious this is, let's see if there is another Sam -type situation on our hands. First, let's talk the accusation. Well, it's pretty much right there in the headline, Binance co -mingling customer funds with company revenue in 2020 and 2021, the sourcing, three sources familiar with the matter and Reuters, but let's try to get a few more details. From the Reuters piece, quote, one of the sources, a person with direct knowledge of Binance Group's finances, said the sums ran into billions of dollars and co -mingling happened almost daily in accounts the exchange held at U .S. lender Silvergate Bank. Reuters couldn't independently verify the figures or the frequency, but the news agency reviewed a bank record showing that on February 10th, 2021, Binance mixed $20 million from a corporate account with $15 million from an account that received customer money. Reuters found no evidence that Binance client monies were lost or taken. So there's a bunch that's important here. One is that Reuters couldn't verify the figures in total and that they really only had this one particular bank record showing a mixing. Now, what did Binance say? Well, in a statement to Reuters, they obviously denied this. Spokesperson Brad Jaff said, these accounts were not used to accept user deposits. They were used to facilitate user purchases. There was no co -mingling at any time because these are 100 % corporate accounts. Reuters goes on.
The Breakdown
Biden's DAME Mining Tax Is an Attack on Bitcoin
"Of the things that bitcoiners have held a lot of stock in over the last 6 months is that as much as it has seemed like there has been a coordinated effort targeting the larger crypto industry. Bitcoin has seemed a bit more immune. Even the arch nemesis SEC chair Gary gensler repeated recently in front of Congress that Bitcoin was in fact a commodity, a claim he would not make for Ethereum. Now to be fair, he said that it was a commodity because that was the assessment of a previous SEC, not really a full throated endorsement, but nevertheless. Still, some bitcoiners have warned that it felt like there was another shoe to drop. That it wasn't like there were a bunch of Bitcoin maxis running the banking infrastructure or the Biden administration who were just targeting the rest of the crypto industry but ignoring Bitcoin. wrote about it in the context of privacy. He said, I feel like the Bitcoin community isn't giving enough thought to how we're building things that won't be targeted by regulators. We've seen some clear lessons in the broader crypto Ethereum community with opaque and tornado cash, the Aztec shutdown and the implementation of the travel rule in Europe. Governments hate privacy and will try to destroy anything that enables 100% privacy. As a consequence, every regulated crypto company will drop privacy tools like a hot potato. Now another obvious area that could be targeted when it comes to Bitcoin is the environment. Washington's attentions have of course been on the systemic risks to the banking system that some people argue crypto represents. That's understandable given the failures of signature bank, silvergate bank. Silicon Valley bank, et cetera however, even as that has been happening state regulators have been much more focused on Bitcoin mining. Last year, for example, New York passed a moratorium on licenses for new Bitcoin miners, or for the approval of license extensions for minors that already had licenses unless they were using 100% renewable energy.
The Breakdown
Is Credit Suisse the Next Banking Domino?
"Right Friends, today we are talking about the same thing that everyone in traditional markets is talking about, which is Credit Suisse. Bloomberg's headline Blair's Credit Suisse and fight to win back confidence as shares plunge. And that headline has recently been updated to the even scarier Credit Suisse ignites global market route as banking fears return. So what's going on is Credit Suisse the next domino is it a big nothing burger? Is it something totally different, but it doesn't matter that it's totally different because all people here is bank failure and they get scared, let's dive in. So Credit Suisse has been looking shaky for a while. It's in the midst of a larger restructuring process by which its investment banking division will be spun out and the bank will focus just on its wealth management division. This is actually its second big strategic pivot in the last two years and obviously in the world of banking, that sort of bobbing and weaving isn't necessarily something investors get too excited about. To say nothing of course of depositors. Now right now, the specter of Silicon Valley bank is hanging not only over Credit Suisse, but the whole banking sector. This is despite the fact that Credit Suisse's leadership says there's no comparison, and that the bank trying to get back to profitability after changing its strategy has nothing to do with the extreme liquidity issues of smaller U.S. banks. However, this morning markets were further roiled when the chairman of the Saudi national bank, which is Credit Suisse's biggest shareholder, said that they would not be investing any more money into the beleaguered bank. The chairman of the Saudi national bank said that the biggest reason is just regulatory and statutory reasons that prevent them from boosting their share beyond the just under 10% they own now. Now as prosaic that might be, it obviously still wasn't good news. CSS shares were down as much as 29% hitting a new all time low. They're one year default swaps are also in a distress zone currently sitting around 18 X, the one year CDS for UBS, and 9 X for Deutsche Bank. Now, all in all, there are two big and quite different interpretations of what's going on. Investor in China perma bear, Kyle bass writes the recent collapse of SVB, signature bank, and silvergate bank was a warmup of larger things to come outside of U.S. borders. Credit Suisse's 5 year insurance against default has gone parabolic this morning, given their capital structure they now have three weeks or less to be sold.
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"silvergate bank" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"Do you trust the banks at times like this? Do you got Bitcoin? You feel me? Now let's take a break down our final story of the day as the Bitcoin price continues to climb. Currently at around 24,200, let's go send it to the moon. Now arc invest CEO Kathy wood says the Bitcoin and ether have continued to chug along even amid the crisis faced in the legacy markets. That's right in a new episode in the know wood says the Bitcoin and Ethereum networks are functioning as expected and are not in any way affected by the high profile collapse of silvergate bank and Silicon Valley bank, quoting Kathy here, the Bitcoin blockchain, and Ethereum, those two blockchains have not skipped a beat. There have been no transactions and interrupted the smart contracts, which are rule based when there is a margin call, a stock goes down or something drops in value. There's an automatic margin call. It just happens automatically. And this over collateralized system, what has happened with Bitcoin and Ethereum blockchains is they serve as proof of concept. They have not stopped transactions that were supposed to take place, are taking place seamlessly, and the health of the network still very strong would also says that what happened in the legacy markets last week, where people witnessed the meltdown of two publicly traded banks, bodes well for the future of crypto, and she's already right, Bitcoin's up 15% on the day off the back of that news, quoting her here. Short term signals on chain signals might have turned a bit negative because crypto is not immune from liquidity pressures generally in the traditional world. But this idea of decentralized and transparent, which we believe is going to support digital wallets, has just gotten a more proof of concept, more centralized entities are going under. Now to watch this video that Cathy wood and titled is the fed even listening. Check the show notes below the video in the description, also like to point out her massively bullish $1 million Bitcoin price prediction, which I commonly cover here on the show by the year 2030. Let me know if you agree or disagree with Kathy wood and don't forget to check out crypto news alerts net for the full premium experience with video and to participate in the live. Q&A, and I look forward to seeing you on tomorrow's episode.
Blockonomi
Game Over Silvergate Bank in Liquidation
"11 a.m. Thursday March 9th, 2023. Game over silvergate bank in liquidation. The threat of bankruptcy has extended and nothing else could save the crypto bank except itself. Silvergate announced today it would shut down operations and liquidate its bank in an effort to cope with the recent crisis. According to silver Gates declaration on business wire, silvergate capital corporation, the parent company of silvergate bank, plans to. The postgame over silvergate bank in liquidation appeared first on blocking only.
Crypto Briefing
Crypto Friendly Bank Silvergate Shuts Down
"4 p.m. Thursday March 9th 2023 crypto friendly bank silvergate shuts down. Silvergate bank is winding down operations, but it assured that all customer deposits would be fully repaid. Traditional banking risks another pillar of the crypto industry has succumbed. Silvergate capital
CryptoCompare
Market Analysis Report 08 Mar 2023
"10 a.m. Wednesday March 8th, 2023. Market analysis report march 8th, 2023. Voyager bankruptcy judge approves binance to U.S. 1.3 billion deals silvergate bank talks with FDIC to stay afloat MakerDAO proposes allocation of 750 million to U.S. treasuries.
CryptoCompare
Market Analysis Report 09 Mar 2023
"10 a.m. Thursday March 9th 2023 market analysis report March 9th, 2023. Silvergate bank to wind down operations CFTC chair says stablecoin and ether are going to be commodities coinbase announces wallet as a service offering.
Bitcoin Market Journal
How Silvergate Bank is Impacting Crypto
"5 p.m. Friday March 10th, 2023 how silvergate bank is impacting crypto your top ten weekly fundamentals. The post how silvergate bank is impacting crypto appeared first on Bitcoin market journal.
Thinking Crypto News & Interviews
"silvergate bank" Discussed on Thinking Crypto News & Interviews
"I don't know if you can answer this question because it is a difficult one. Because we can't read people's minds, but is this a move to slow crypto down or to kill crypto? Because it seems like you still have these bigger incumbent players like your black rock. You've been wine melon and so forth who took a position last year despite all the things that happen, but then you have these enforcement actions coming. And there's not an outright ban of crypto, but it's like just, I guess, operation choke point as they're calling it. Yes, at least we found out yesterday in this hearing, or it was 7 one, the witnesses and the financial services hearing that was focusing on the administrations of approach to crypto regulation and a lot of it being critical from both sides of the audience, how Republicans and Democrats being very critical of the administration's approach, not just yes, you see, but to your point, we had the banking regulators who have been discouraging banks in particular to interact with crypto companies to bank crypto companies to issue stablecoins and other plethora of other activities in the digital asset space. And it was actually pretty interesting because Jerome Powell, the house hearing said, I thought that statement was actually pretty middle of the road. I thought we were able to say there's innovation here, but at the same time, be careful the risk. But at least from our perspective, we saw that statement as incredibly negative. I didn't see too many positive if any positive statements there. And that's a real concern. We're seeing, especially with the recent draw with the silvergate. Silicon Valley bank and others, there's a lot of concern about crypto companies just getting access to the banking system.
The Breakdown
"silvergate bank" Discussed on The Breakdown
"Giving crypto companies banking access is officially winding down. Today we're going to deep dive on the closure and how we got here because I think the how is incredibly important. I think that there are three possible interpretations of this whole affair. The first, let's call crypto risk. The idea that this was some inevitable byproduct of bankers getting involved with the overly risky crypto sector. This you might sum up as the Elizabeth Warren position. The second possible interpretation is that silver Gates failure wasn't strictly a byproduct of crypto risk, but had to do with specific risks that silvergate took in its business. In other words, specific business decisions they made. The third possible interpretation is that this was a coordinated hit led by a combination of short sellers and antagonistic politicians out for blood in the wake of the collapse of FTX. So keep those three possibilities in mind as we dig into the story. On Wednesday, silvergate bank announced that it would quote voluntarily liquidate its assets and wind down operations. A press statement explained, quote, in light of recent industry and regulatory developments, silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward. The banks wind down in liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. Outside legal, financial and project management advice firms have been appointed to assist with the winding down process. Now silvergate has looked shaky since announcing last Wednesday that it would be delaying the filing of its ten K annual report. The delay notification stated that silvergate needed more time to assess how regulatory investigations and losses associated with last November's $8 billion bank run had affected its earnings. The filing suggested that the situation of the bank could be dire, explaining that these events had led management to evaluate the bank's ability to continue as a going concern. In the fallout from last week's announcement, silvergate rapidly shed its crypto customers as one by one major crypto firms announced that they had cut ties with the distressed bank over the course of the following day. Stock tumbled collapsing by more than 60% to an all time low after having already drawn down by more than 90% in the previous 12 months. In the wake of all that, silver gated announced that they were closing their silvergate exchange network or seine, which was a near instant settlement network between customers that held accounts with silvergate and was used extensively by crypto exchanges and
The Breakdown
"silvergate bank" Discussed on The Breakdown
"All right guys, well, it has happened. As of last night, silvergate bank, one of the pioneers in giving crypto companies banking access is officially winding down. Today we're going to deep dive on the closure and how we got here because I think the how is incredibly important. I think that there are three possible interpretations of this whole affair. The first, let's call crypto risk. The idea that this was some inevitable byproduct of bankers getting involved with the overly risky crypto sector. This you might sum up as the Elizabeth Warren position. The second possible interpretation is that silver Gates failure wasn't strictly a byproduct of crypto risk, but had to do with specific risks that silvergate took in its business. In other words, specific business decisions they made. The third possible interpretation is that this was a coordinated hit led by a combination of short sellers and antagonistic politicians out for blood in the wake of the collapse of FTX. So keep those three possibilities in mind as we dig into the story. On Wednesday, silvergate bank announced that it would quote voluntarily liquidate its assets and wind down operations. A press statement explained, quote, in light of recent industry and regulatory developments, silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward. The banks wind down in liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. Outside legal, financial and project management advice firms have been appointed to assist with the winding down process. Now silvergate has looked shaky since announcing last Wednesday that it would be delaying the filing of its ten K annual report. The delay notification stated that silvergate needed more time to assess how regulatory investigations and losses associated with last November's $8 billion bank run had affected its earnings. The filing suggested that the situation of the bank could be dire, explaining that these events had led management to evaluate the bank's ability to continue as a going concern. In the fallout from last week's announcement, silvergate rapidly shed its crypto customers as one by one major crypto firms announced that they had cut ties with the distressed bank over the course of the following day.
The Breakdown
The Real Reasons Silvergate Collapsed
"All right guys, well, it has happened. As of last night, silvergate bank, one of the pioneers in giving crypto companies banking access is officially winding down. Today we're going to deep dive on the closure and how we got here because I think the how is incredibly important. I think that there are three possible interpretations of this whole affair. The first, let's call crypto risk. The idea that this was some inevitable byproduct of bankers getting involved with the overly risky crypto sector. This you might sum up as the Elizabeth Warren position. The second possible interpretation is that silver Gates failure wasn't strictly a byproduct of crypto risk, but had to do with specific risks that silvergate took in its business. In other words, specific business decisions they made. The third possible interpretation is that this was a coordinated hit led by a combination of short sellers and antagonistic politicians out for blood in the wake of the collapse of FTX. So keep those three possibilities in mind as we dig into the story. On Wednesday, silvergate bank announced that it would quote voluntarily liquidate its assets and wind down operations. A press statement explained, quote, in light of recent industry and regulatory developments, silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward. The banks wind down in liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. Outside legal, financial and project management advice firms have been appointed to assist with the winding down process. Now silvergate has looked shaky since announcing last Wednesday that it would be delaying the filing of its ten K annual report. The delay notification stated that silvergate needed more time to assess how regulatory investigations and losses associated with last November's $8 billion bank run had affected its earnings. The filing suggested that the situation of the bank could be dire, explaining that these events had led management to evaluate the bank's ability to continue as a going concern. In the fallout from last week's announcement, silvergate rapidly shed its crypto customers as one by one major crypto firms announced that they had cut ties with the distressed bank over the course of the following day.
Thinking Crypto News & Interviews
"silvergate bank" Discussed on Thinking Crypto News & Interviews
"The <Speech_Male> magazine or whatever you want to <Speech_Male> call it and Ron Hammond <Speech_Male> of the blockchain association <Speech_Male> <Speech_Male> retweeted <Speech_Male> Gary's tweet <Speech_Male> here and said, it is <Speech_Male> pretty rare for a <Speech_Male> regulator to pen <Speech_Male> an op-ed and <Speech_Male> purposely drop <Speech_Male> it in an <Speech_Male> hour before <Speech_Male> the financial committee <Speech_Male> hearing on the administration's <Speech_Male> approach <Speech_Male> to crypto <Speech_Male> reminds me of <Speech_Male> Democrat Richie Torres <Speech_Male> statement <Speech_Male> on gender <Speech_Male> a few months ago. <Speech_Male> A quote, <Speech_Male> a politician <Speech_Male> pretending to <Speech_Male> be a regulator. <Speech_Male> <Speech_Male> So <Speech_Male> we need Congress <Speech_Male> to act. <Speech_Male> The way <Speech_Male> to stop this is where <Speech_Male> Congress to act to <Speech_Male> come together Democrats <Speech_Male> and Republicans <Speech_Male> because Gary <Speech_Male> is out of control. <Speech_Male> <Silence> We also <Speech_Male> got some <Speech_Male> folks correcting <Speech_Male> Gary gensler. <Speech_Male> So <Speech_Male> <Speech_Male> Cody <Speech_Male> carbone of <Speech_Male> the chamber of digital <Speech_Male> commerce, <Speech_Male> he <Speech_Male> responded to some statements <Speech_Male> Garry cancer <Speech_Male> made against <Speech_Male> her rejects crypto <Speech_Male> threat to go <Speech_Male> overseas, <Speech_Male> quote from Gary <Speech_Male> as we lose <Speech_Male> more if investors <Speech_Male> get harmed here, <Speech_Male> he said, it's a <Speech_Male> basic bargain <Speech_Male> in finance. If you <Speech_Male> want to raise money <Speech_Male> from the public disclose <Speech_Male> certain facts and triggers, <Speech_Male> well, <Speech_Male> Cody carbone <Speech_Male> said genser <Speech_Male> is incorrect in <Speech_Male> his statements. One, <Speech_Male> Micah, <Speech_Male> which is the <Speech_Male> regulatory framework <Speech_Male> in overseas, <Speech_Male> does <Speech_Male> cover does cover <Speech_Male> Bitcoin under its definition <Speech_Male> of a crypto asset <Speech_Male> to U.S. <Speech_Male> investors are <Speech_Male> already getting harmed <Speech_Male> because they're seeking <Speech_Male> out offshore <Speech_Male> opportunities <Speech_Male> to invest IE <Speech_Male> FTX. <Speech_Male> So remember FTX <Speech_Male> collapse right under <Speech_Male> Gary's nose, <Speech_Male> Gary <Speech_Male> was meeting with sandbank <Speech_Male> and freed and the other FTX <Speech_Male> officials <Speech_Male> and Gary <Speech_Male> did not stop <Speech_Male> Celsius. <Speech_Male> He did not stop <Speech_Male> Terra Luna. He <Speech_Male> did not stop Voyager. <Speech_Male> He did <Speech_Male> not stop three hours <Speech_Male> capital, right? <Speech_Male> But he did stop Kim <Speech_Male> Kardashian. <Speech_Male> Thanks, thanks a lot, Gary. <Speech_Male> Yeah, Kim Kardashian <Speech_Male> is the one who lost billions <Speech_Male> of dollars. <Speech_Male> Kim Kardashian was the one <Speech_Male> who was in your office. <Speech_Male> No, no, that was actually <Speech_Male> sandbag me afraid. <Speech_Male> <Speech_Male> <Speech_Male> So Gary, you <Speech_Male> know, same old talking <Speech_Male> points. He just lying. <Speech_Male> He's not providing <Speech_Male> the clarity, but <Speech_Male> once again, <Speech_Male> his job is to <Speech_Male> slow this thing down. <Speech_Male> <Speech_Male> Just muck up the <Speech_Male> entire process <Speech_Male> and the industry cause <Speech_Male> confusion. So <Speech_Male> who's banking buddies <Speech_Male> can come in, <Speech_Male> swoop in <Speech_Male> and take over. <Speech_Male> Now, <Speech_Male> there's also <Speech_Male> reports here <Speech_Male> that Gary gensler has <Speech_Male> apparently, <Speech_Male> he has multiple SEC <Speech_Male> email accounts <Speech_Male> that he uses. <Speech_Male> Eleanor <Speech_Male> Tourette of Fox <Speech_Male> business said, why would <Speech_Male> he need to do this? I've <Speech_Male> reached out to the SEC <Speech_Male> for comment. <Speech_Male> So <Speech_Male> Gary, of course. <Speech_Male> <Speech_Male> Continues to shady <Speech_Male> activity. This is <Speech_Male> what we're dealing with here, <Speech_Male> my Friends, <Speech_Male> corruption, <Speech_Male> nonsense, <Speech_Male> hypocrisy, <Speech_Male> and <Speech_Male> he needs to be kicked out of <Speech_Male> office. <Speech_Male> All right guys, <Speech_Male> once again, <Speech_Male> not good news when news <Speech_Male> you should know about. <Speech_Male> It's pretty tough <Speech_Male> out there. <Speech_Male> Once <Speech_Male> again, I'm bullish <Speech_Male> long term, but <Speech_Male> right now <Speech_Male> things are tough. I think <Speech_Male> the silver gate situation <Speech_Male> is a black swan <Speech_Male> event. We could <Speech_Male> see Bitcoin's price <Speech_Male> just roll over, <Speech_Male> maybe <Speech_Male> go back down to, <Speech_Male> I don't know, 17, <Speech_Male> 18 K, our <Speech_Male> lower, I just don't <Speech_Male> know what's going to happen. <Speech_Male> <Speech_Male> And I think <Speech_Male> Bitcoin's retracement <Speech_Male> is going to be <Speech_Male> delayed. I hope I'm <Speech_Male> wrong, but <Speech_Male> what <Speech_Male> we're seeing right now, <Speech_Male> the all <Speech_Male> out attack the market <Speech_Male> is <Speech_Male> going to react to that. <Speech_Male> Once again, it's not <Speech_Male> that crypto is dead <Speech_Male> or is going to die. <Speech_Male> That's <Speech_Male> not what's happening here, <Speech_Male> but we are <Speech_Male> under attack. <Speech_Male> <Speech_Male> But <Speech_Male> this tech will win <Speech_Male> <Speech_Male> and <Speech_Male> once again, as history <Speech_Male> has shown us disruptive <Speech_Male> attack always wins. <Speech_Male> Anyway, guys, <Speech_Male> let me know what you think <Speech_Male> and I'll talk to you all. <Speech_Male> Later. <SpeakerChange>
Thinking Crypto News & Interviews
"silvergate bank" Discussed on Thinking Crypto News & Interviews
"So let's move ahead here, Caitlin long also weighed in on this situation with silver gate. She said, wasn't the fed silver Gates regulator question mark. The banks we regulate in contrast are well protected from bank runs through a robust array of supervisory requirements. This is some fed chair vice fed vice chair supervision Michael Barr speaking this morning. So Caitlin clearly calling out the hypocrisy and double standard here and she also responded to senator sherrod Brown, who was trying to make light of silver Gates bankruptcy or decision to liquidate. She said, senator sherrod Brown, you're wrong that crypto triggered silver Gates issue. What did it was the $13.3 billion in demand deposits that depositors could withdraw in minutes, but only $1.4 billion of cash had silver brigade held $13.3 billion of cash, the bank run wouldn't have impaired its capital, not a crypto problem. So this goes back to fractional reserve banking, right? So this is not a crypto specific issue. The reason it is being reported via crypto is because once again, it's so brigade was helping to bank a lot of crypto companies, but that had nothing to do with the cash they had on their balance sheet. And then, you know, she provided silver Gates numbers and so on and so forth. And she said, when a bank would highly volatile deposits makes a levered investment in ten year bonds into a fed tightening cycle, what happens when a bank run hits its predictable liquidate those bonds at a loss, impairing the bank's capital, it's an indictment against fractional reserve banking. She's absolutely right. So that's what's at play here, guys. This is why you can't just read headlines, you have to go into the details and what we see and attorney John deaton actually weighed in on this. He said, FTX and silver gate will 100% be conflated by Gary gens or Elizabeth Warren and others to push their anti crypto agenda. Warren has already made a despicable comment regarding celebrity gate and she isn't letting the truth get in the way of her narrative. Stand by to puke as they guess like the American people. Well said, that is exactly what's happening here. So they're going to gaslight. You're going to go on C so you crypto, that bad stuff. That's what caused silver Gates collapse. Nope. Did silvergate take a hit from the crypto problems that we had last year? Yes, but that is not what put them out of business. It's their fractional reserve banking and the bets they made. And of course, Elizabeth Warren contributing to the bank run. So Nick Carter weighed in on the politicians, you know, using this silvergate situation for their agenda.
Crypto Banter
"silvergate bank" Discussed on Crypto Banter
"But they're going to volunteer voluntarily very slowly in an orderly manner actually shut down this bank. Now, a lot of people call this. A lot of people say that it was going to happen. And in fact, short sellers here made $780 million in the process. Now, you remember that we had a guy called Mark cohodes on the show. And he was the guy that was saying that silvergate bank is going to go bankrupt. They were shenanigans. They were involved in whole FTX thing. And he was the guy who was pretty vocal about silvergate Ben going down. In fact, let me actually show you one or two of his previous tweets. If I've got them, I don't know previously so I'll show you, I'll show you in a second. So anyway, so silvergate bank is now gone. One of the biggest on ramps and suppliers of money into the crypto ecosystem, because they were like the big crypto bank. That was step number one. Now they are concerned that the next bank to go under is actually going to be signature back. So signature bank is the next, it's the other crypto bank. So Mark code is the same guy that called the silvergate bank collapse. He said, what does that make signature bank New York? Signature banking York is to binance what silvergate bank was to FTX. It's a question of time basically. He is now warning that and he did warn about FTX and he did want to look at bank. He's not saying, look, signature bank is the next one to go down and because it is to binance what silvergate bank was to FTX official, which is a way for FTX to get money onto their ecosystem. That is what he's wanting at the moment. I don't know if you guys heard this last night. But he was, he was on a Twitter space with some in Dixon. You got to hear this. I mean, I think it's super funny. Isn't it a song? No son. No son? Hold on, let me try and get some. Let me try and get Sandra. I'm well aware of burn and burns four years ago. And I help throw his ass out of there. T zero is the only game in town. You look securitized. You've got is ion X SEC and senator approved? Yes. I am asked. Yes, it was securitized. Thanks for the future. I did the first securities business in crypto. There's a lot of other players. You're just pushing your back. Okay, who's this? Who's talking? Simon Dixon. Okay, I'll remember you, Simon. No problem. No, I'm just saying. You're full of more shit than a fucking Christmas turkey. Do you know who the founder of ion X is? Do you know who he is? Well, Alan silbert Barry silbert's brother. No, that's not the founder of do you know the founder of ion X? Yeah, 'cause I was pitched to the business from the first round. I'll give you a hint. He's Israeli. But yeah, they are SEC regulated. Well, that's not the question. You said you know who the fucking founder is. Who I quote it was Alan silbert, tell me. It's not Alan silbert. The guys Israeli. Do you know who it is? No, I don't, no. Don't fucking tell me, you know who it is. Don't fucking tell me, you know who it is. He wasn't. He was a shadow founder. I didn't know that. Well, while you learned something.
Crypto Curious
"silvergate bank" Discussed on Crypto Curious
"It's like 95% correlation. It's the strongest I've seen across anything. You know, Jack Dorsey, hey. He looks like homeless man, but he knows what he's doing. All right, what up next? According to electric capital, the U.S. and Europe are losing share in the global web three developer market losing 2% and 1% share retrospectively each year. Conversely, India, Africa, and Latin America are taking share accounting for 18% globally for web three developers. There you go. Well, no surprise there because why would you bother doing anything when it comes to crypto in America right now? They're not exactly crypto friendly for the crypto native, so no surprises. But that rounds it out for our short sharp news bites and the news this week in crypto. It has been a blast having mark on the program. Anything you want to share with our listeners as we round out the show Mark. But we definitely have to have you back. Some alpha. It's an alpha. Some alpha, any alpha that you want to share. I mean, we definitely have to get you back as the pilot program goes on, but absolutely. Any sneaky any sneaky coins that you're looking at at the moment are not financial advice, obviously. Not financial advice, but I reckon people should check out something called crypto Lulu, which is an NFT project based here in Sydney. And I say based here because it's tied to a physical space. It's a bar slash restaurant membership in the rocks. Oh yes, I've seen you. I've seen you pop this one, yes, definitely. Alastair, I think he's worked for bamboo. He's our inhale, social media expert. He's been doing a lot of work for them. So shout out to our star, the king. Hey, you're right. They're in circular case squires landing is right across the road. It's a great spot. But it's real world. This is what we're seeing this year. We're seeing a lot more of these real world uses of blockchain and NFTs as digital memberships. And we're going to see a whole lot more. So that's the exciting alpha, just keep an eye out for that kind of stuff. Well, that was the greatest shout out if I well done. That's why we love Mark. Are we ready? Welcome back any time. Thank you. All right, that's it. We're signing off. Thanks for sticking around to the end of the show, everybody. As always, if you want to reach out, you can get us on podcast at get bamboo. Please join us in the Facebook group hello to everybody in our group, thanks for being with us. And find us on social media. Thanks for being with us everybody see you next week. Bye. See you guys. Bye for now. Cryptocurrency is a product of equity mates media. All information in this podcast is for education and entertainment
Crypto Curious
"silvergate bank" Discussed on Crypto Curious
"Or fulfilling wire transfers from silver gate, circle who are the biggest. One of the biggest crypto companies with USD C said that they were backing away from silvergate and pack sauce which has been a bit red hot in the news recently said that they were discontinued transfers to its account with silvergate. So the crypto group chats were firing on this one as a bit of a panic, Mark, what's your take? Yeah, it's pretty interesting and just because I've got cousins in LA that'll probably listen in. It's la Jolla. We didn't get too much to the Mexican and Spanish stuff here. So, you know, it's very, very, very frequent over there, la Jolla, yeah, it's a great area and that they would definitely affect it. I think we saw in January that so we get we're cutting headcount about 40%. So the riding was kind of on the wall, kind of goes to show how major infrastructure can really affect the rest of the market. And what's interesting is that we saw physical or physical, like we saw the real effects of a lot of these because they're all intertwined. They're all banking with the same groups and stuff. You know, it's not just that crypto is very correlated amongst each other. There's reasons for that just like the traditional markets in that a lot of people were banking with them. But we saw moves towards another bank called signature. But unfortunately there are signatures also kind of pulling back as well. So, you know, these saviors of last or lenders will last resort. Even if you do move to them, they're trying to cut their exposure by about 50%. So what's actually the regulatory pressure? What's actually the reason behind this? Is it that the U.S. is trying to close off and choke crypto? Chokehold .2, isn't it? Yeah, choke .2, not just the movie. We missed the first one. So it feels like it's a little bit of that. And I guess the worry here in Australia is if the regulators do go down that path and try to follow what the U.S. is doing just because it's so big, it's so in the news that it's just easier to point to someone else doing something and we just follow suit, but I don't think that's what's going to happen here. Especially with what the government is doing around token mapping and some other kind of consultations. But it is a worry for many other places.
Crypto Curious
"silvergate bank" Discussed on Crypto Curious
"If you're new to crypto, we recommend starting with our early episodes where we break down the basics and give you a solid foundation to understand the crypto world. Join us as we explore the ever evolving world of cryptocurrency and educate ourselves along the way. Let's dive in together as we discover the exciting potential of crypto. In this week's episode, Craig and I are joined by Mark monfort, whose cofounder of the Oz DeFi association and not centralized. Mark is a staple in the crypto scene here in Australia with in depth knowledge across a wide range of industry topics and an all around nice guy who always has a smile on his face. So for me personally, if we're going to an event, this is the guy that I always hope to run into. So we're really pleased to have you here. Welcome, Mark. How are you going? Thanks for having me, jeez. I need a hype girl. I think you won the job that was an amazing intern to glad this is recorded. Mark is also proclaimed the busiest man in crypto. Australia. He's everywhere. Not even self proclaimed there. So yeah, it's crazy. 24 hours ain't enough. It is true though. Every time I jump on LinkedIn, there's something where you're going somewhere or you're doing something. So thank you so much for joining us. Okay, let's get into it, folks. So the biggest story over the last 7 days has undoubtedly been the next body shot to the crypto market. And I'm talking about ladies and gentlemen, silver gate. Silvergate is one of the most well-known crypto friendly banks and it seemingly capitulating under a mix of regulatory and market pressures this past week and undergoing what looks like a bank run of sorts. So what quick things off was a two week delay in its annual ten K SEC filing last Thursday and they cited a need for more time in assessing its finances. So still the gate stocks immediately tanked on this news, dropping 55% to around $6 50 per share. And JPMorgan analysts downgraded the silver Gates already down stocks from neutral to an underweight rating Craig. Yeah, so silver gate are huge. This is a big deal because they're pretty much quite unquote a crypto friendly bank that some of the biggest exchanges in market makers use that makes it easier for them to move funds in and out of the crypto ecosystem. But here's just a bit of an overview of what's happened since. So since then, coinbase tweeted that it can no longer facilitate payments using large dollar,
Markets Daily Crypto Roundup
"silvergate bank" Discussed on Markets Daily Crypto Roundup
"Today's featured story comes courtesy of George colludes, coindesk senior research analyst and columnist. Today's piece is entitled crypto's banking problem is not ironic. The institution of personal banking is incredibly powerful. You don't even need to read a research report or some harrowing personal account to prove it. Instead, just pretend for a moment that all your bank accounts are frozen. Your credit cards don't work either. How will you get on? Well, hopefully you have a stash of cash under your mattress. Or you have Bitcoin and you live near enough places that genuinely participate in the Bitcoin circular economy. Maybe you live in Argentina, and you can use a crypto dollar stablecoin like tether because you're sovereign currency has let you down since the 1980s. Otherwise, you're in a tough place. The low hanging fruit here is a clear call to action. We need more of these circular crypto economies. Communities, counties, states, entire countries, and example being El Salvador's Bitcoin beach that operate completely separate from the legacy banking system. But while these circular economies continue to build out, banking and crypto are still intimately tied. Just look at what we're covering by silvergate bank running into a brick wall of trouble that was punctuated by its stock losing over 50% of its value of Thursday last week. Silver get is the bank for a lot of crypto businesses that tend to have problems maintaining banking relationships. Silvergate opening its doors to crypto is viewed as a critical juncture for crypto businesses, especially crypto exchanges, like colleague Daniel Kuhn highlighted as much in a piece published last week titled before silvergate in after silvergate, borrowing from a quote by now disgraced FTX founder saying make men freed about how life was better for crypto companies with silvergate in the fold. If we look at crypto exchanges, silvergate is so well liked because a, it gives access to banking in the first place and B silvergate ran the silvergate exchange network or SEN, which, although recently disabled, allowed 24/7 instant settlement between silvergate bank clients at any time, including nights and weekends. It functions sort of how like Venmo or cash app settles debts between Friends for late night ramen or pizza or whatever. Access to SEN attracted a lot of crypto exchange clients, including binance U.S., kraken, and Gemini. And then the FTX collapse happened, which had segregate customers ANSI and led to billions of dollars in deposit withdrawals. So forget subsequently dipped into the federal home loan bank system to prop up operations. Things were obviously tough for silvergate and other crypto banks surely, and it got even tougher when U.S. senator Elizabeth Warren, a Democrat from Massachusetts, sent silvergate a scathing letter, while The White House was publishing blog posts about its crypto concerns. Q even more withdrawals from silvergate and the shutdown of the highly praised SEN last week. To be clear, the regulators and politicians didn't actually say crypto exchanges in companies shouldn't be banked. But they injected uncertainty into the industry. And the funny thing about sober gate is that it didn't run into issues because it was making loans using Bitcoin and crypto as collateral. It ran into issues because of a bank run, a bank run encouraged by the U.S. government. This is where a good argument about the potential ill effects of choke .2 comes into play. To use coindesk columnist and venture capitalist Nick Carter's phrase. Choke .2 is basically the idea that the government can threaten regulation against banks if they serve a certain companies or certain industries. I'm not going to dive into the intimate details there, but I want to tackle the banking problem, it engenders. So gets issues have made it somewhat obvious now that crypto does in fact have a banking problem. And most crypto critics see this and say, crypto was made to skirt the banking system. It's really funny that crypto needs banks to skirt the banking system. Funny, well, maybe, but I'm not laughing. First off, banks and crypto can coexist. Yes, even in a hyper Bitcoin I world. And in my view, they will and should. Just because the option to opt out of using banks exist with Bitcoin or some other crypto doesn't mean that everyone will shun banks entirely. In fact, on his banking can be a net positive. There will of course be and are a hardcore subset of self sovereign individuals who buck third parties entirely. But there are billions of people in this world. Organization of those people is far easier with some reliance on third parties. The world that Bitcoin and crypto can encourage is a world where those third parties are more honest. Moana's banks in the business of keeping your money safe and providing responsible lenders access to future capital or IE credit is better than fewer on its banks. And wavy, I know, but potentially true. Lastly, crypto companies needing banks to skirt the banking system, highlights exactly why the banking system needs to be skirted or at least somehow broken up. Imagine for a moment there is an institution in a country that is so critically important that the simple threat of regulation against the institution for servicing a client in an undesirable industry brings that undesirable industry to its knees. But no need for imagination. This is exactly what's happening in the United States. We now see an implicit promise of future regulation from the executive and legislative branch of the U.S. government. If the banks that serve as crypto companies don't shape up, whatever that means. While I don't think this is a good thing, it can be, if not overdone. If there is a higher bar for banking access for crypto companies that lead to more thorough diligence that somehow results in fewer bad companies in the ecosystem, ultimately retail will be safer and the system less sensitive to future crypto shocks. And maybe that is what happens. For now, I choose cautious optimism. And that's our show for today. Thank you very much for listening. If you have any questions or comments, send the show an email at podcast at coin desk dot com or you can email me directly at Adam Levine at coin desk dot com. If you like what we're doing, we always appreciate reviews on Apple podcasts or your preferred listening platform. This episode was produced by Adrian blossom myself with further support from the podcast team over at coindesk dot com. Have a great rest of your day and we'll be back tomorrow with another episode of markets daily.
Crypto Banter
"silvergate bank" Discussed on Crypto Banter
"And he came out and he made a lot of noise about this attack, which was coming on survey. He said, they'd be implicated for a lot of things that they did on FTX. And he was actually, he shorted silvergate bank. He must have made a pack of doing it. Now, a lot of the exchanges that have abandoned silver gate bank went and moved to signature bank. Because they're not many other banking options. There's not many other places. If you want to be a crypto exchange, there's not many other banks that will accept crypto related companies or specifically exchanges as customers. I mean, you had silvergate bank, you had another bank I think it was called margin bank or marginal bank or whatever it was called. And then you've got signature bank. Now the problem is at the same person who was calling for the demise of silvergate bank, is now talking about the demands of signature bank. He's saying, he's saying that he says, the great thing about letters to FDIC, HD and Y, SEC, all these regulatory authorities, no one can deny that I didn't know what was going on. Then there are the auditors and former informers, my DMs are open and would appreciate all I can help and he tags he tags the two banks. So it could be to me it looks like this operation choke point of what it or whatever you want to call it is very, very, very much in effect. So you've got the regulators going off to be USD through paxos, then going off to Soviet bank. Now everyone's moving to signature bank. And then after that, there's not many other banks that you can really get many in and out of the crypto ecosystem, but very, very, very, very, very few banks. And if that happens, well, you're cutting off the new money that can be coming into crypto. That money is basically that lifelines cut off. And then you basically have a backup, like I said, with holes where money can flow out because you can easily get your money out of the crypto ecosystem, but you just can't get many into the crypto ecosystem. And that's a massive, massive problem. And so I do believe that the reason for this is the lack of liquidity in Bitcoin and until we can allow new money to come into the ecosystem and I don't know how we can get new money to come into the ecosystem when the banks are basically suffocating us and not letting us breathe. We're not going to get another move up on Bitcoin. At the same time, we also are getting huge attacks on some of the biggest exchanges in crypto.
Crypto Banter
"silvergate bank" Discussed on Crypto Banter
"Let's look at this trendline for the first point of invalidation and then let's look at this low as the second part of invalidation, but other than that, I'm actually staying rather bullish. There is, of course, the flip side of this scenario, which is like we are in November. If DX collapsed, where we had this output training pattern and then we had this high low low, and then we broke down quite aggressively FTX rate candle. And we could be playing that scenario. And if we are playing that scenario, there is actually only one thing that could play that scenario. And that is a collapse of maybe binance, or maybe tether. But mainly binance, and there is a lot of binance fight happening at the moment. If the charts are to repeat the 2022 charts, then maybe this finance fed is preemptive. And there is one SEC X SEC commissioner, not commissioner, but enforcement agent, who says my take binance related criminal and civil prosecutions are actually imminent. So this is quite scary. He's saying it's imminent. We're going to dig into that story in a couple of seconds. It forms part of a much, much, much bigger picture, not everyone can see what's happening in this picture. I'm going to draw, I'm going to show you exactly what's happening. It's not as simplistic as it seems. It's not as disconnected as it seems. Actually, what's happening is it all started right here when you go into the Audi chart. And you see this big red candle. This big red candle over here is when silvergate bank had its collapse last week. And this silver gate bank collapse, I don't know if you remember, but all the exchanges basically abandoned silver gate and said, look, we can't be part of this. This is too dangerous. There's too much too much regulatory scrutiny too much, uncertainty, too much, too many liquidity issues. We can't be caught banking with a bank that's got liquidity issues because maybe our customers funds will actually stay. Stuck in this bank. So we're not really going to get involved. And so we saw all the big crypto exchanges actually pull out of silvergate bank last week. And one of the things that silvergate banks said in a statement last week is that standing along the lines of we are expecting a lot more regulatory scrutiny. That's what I say. The expecting a whole lot of regulatory scrutiny and they said that there is a chance that the bank will be less well capitalized than it needs to be to continue its operation. So that's the two. Signs that are happening. But if you dig a little deeper, what you will see is you will see a couple of other clues. So remember on the one hand, you've got this silver gate candle. Then you've got Bitcoin moving sideways and really not being able to gain any type of momentum up, even though the stock market is strong and the Dixie are strong. So what does that tell you?
Coin Journal
Circle moves its USDC reserve deposits out of troubled Silvergate Bank
"10 a.m. Saturday March 4th, 2023. Circle moves its USD C reserve deposits out of troubled silvergate bank. Silvergate bank in a filing on Wednesday, said losses might leave it with less capital than it needs. The bank recently closed its SEN platform, which institutions used to move money to crypto exchanges. Coinbase, galaxy, and paxos have stopped accepting transfers via silvergate network. USD C stablecoin issuer circle has today announced that it has. The post circle moves its USD C reserve deposits out of troubled silvergate bank appeared first on coin journal.
Crypto Briefing
Coinbase Halts Payments With Crypto Friendly Bank Silvergate
"4 p.m. Thursday, march 2nd, 2023. Coinbase halts payments with crypto friendly bank silvergate. Silvergate bank is still suffering from the aftermath of the FTX collapse it admitted to the SEC yesterday that it was uncertain about its ability to continue operating. Silver Gates and solvency
The Bitboy Crypto Podcast
"silvergate bank" Discussed on The Bitboy Crypto Podcast
"Bought a Lena Garcia had bought trying to get into the camera. That's all of our candle mafia people. They came in for the kingdom mafia and they turned her into a meme. She's basically the new Kenny, they say. Gotcha. She's a new Kenny. Okay, so let's see here. Micro strategy Clinton's been able to exposure to crypto as crypto dot com coinbase and Gemini pause transactions with silvergate bank. What's going on? It's following up hard and the government is going after it, not rocket science here. Micro strategy is denied any meaningful exposure to silvergate as crypto firms who dealt with the crypto bank. I see they're in there at 1215. They know we're not doing 1212 30 right. Yes. Okay, perfect. Myers strategy has denied any meaningful exposure to silver gate. We have a loan from silver gate, not due until 25. So they say, as I were micro strategy, Paulo are doing no. The CTO of tether also pointed out in a recent tweet tether is not exposed to silver gate. Multiple other companies when coinbase packs those galaxy digital and cracking of into their relationship. It's worth noting the troubles might spill into the mainstream banking system, some other federal home loan banks, yada yada yada. I think that's overblown. We were looking at that the other day. It was like .01%, something like that, exposure. We have crypto friendly, so we're getting filed for bankruptcy this weekend. If the banks collapses, federal deposits, the FDIC, of course, might overtake the bank in order to protect depositors. Silvergate also faces class action lawsuits. Harm investors alleged silvergate failed to warn them about deficiencies. Talking about FTX specifically there. Let's see, Elizabeth Warren sent a letter to sober gate, CEO Alex lane expressing concern about introducing crypto market risk. Yeah, the banking broad, she's always doing her job. The banking broad always doing her job. Her job defending the banks. If any of the banks, that's right. I thought she was like, it's the banks. Right. The whole guy, she loves the banks, they're best Friends. Follow the money. Hey JS, we see an nationwide
Tech Path Crypto
"silvergate bank" Discussed on Tech Path Crypto
"Sometimes so buried and integrated in, many of these projects and customers may not even know that silvergate is the banking partner, hence they may not even know they're at risk. That's a bigger factor that plays into this. Here was tear ten K, he talks about silver Gates lost coinbase circle, paxos galaxy, CBOE, all rest in peace. So a big one for sure. Make sure to drop some questions in over on the side if you'd like to chat with me at the end. And of course, also smash the like button. It does help this video get some exposure out there. And hopefully help others kind of step in. Here was watch your guru just in. This is crypto dot com suspending USD deposits and withdrawals. Via silvergate. I don't understand this because, you know, crypto dot com continuously comes and then they come at me a lot on when I just say I'm just not, I just don't trust it. I'm sorry. My feeling based on interactions, things I've had. And I had this about a handful of projects out there and exchanges. And always push back. But why would they let something like this happen? If they're, you know, brilliant people don't let these things happen. You've got to make these moves in advance to not get your customers in these kind of positions where you've got USD deposits and withdrawals now all suspended with silvergate. So big issue happening there. There are core silver Gates warning all of its investors may not survive the year. Obviously, we saw more than a 30%. I'll show you the chart here in a second. But there's a few things here, bank initially posted a loss of almost, look at that, $919 million in losses. Additional losses will negatively impact the regulatory capital ratios of the company, wholly owns subsidiary. The problem is is that this sends a very interesting message, I think, to the rest of the banking industries. And that is that maybe crypto is not as financially sound and profitable as many had thought. And I think the scenario plays into banks who have made bad decisions and now are paying for it. These guys are not new to making bad decisions. They've done it all along. I mean, we've had this all the way back to the banking crisis of 2008. And you go further back into all back into the world of when we had free banking prior to the fed coming in and really restructuring out the banking system works. This is not new, guys. We get to see this every so often and it just so happens we're getting to record one currently. Silver Kate shares thank to our record low. Banks said it wouldn't be able to file its annual report. This is a big problem when resuming whether it can even be viable. So you've seen this massive downturn in terms of the overall stock price. And obviously, just the different strategies of companies that are built around this. There was Adam cockrum and talking a little bit more about the death spiral and zoom in on that. It's going to be rough for crypto. I don't think retail investors realize how much market maker money moved around quickly via SEN. And also how many crypto exchanges are banking with them. So this is a big one. SE and silvergate. So it's going to hit.
Tech Path Crypto
"silvergate bank" Discussed on Tech Path Crypto
"All right, so breaking into news today around silvergate, signature among many other banks, but what is the ripple effect on the crypto markets is the question. We're going to try to answer that. Hopefully give you guys a full rundown of what's happening out there from banking situation. I think there's a bigger underlying strategy of foot. We'll try to give you some analysis on that. My name is Paul Barron. Welcome back into tech path. I want to thank our sponsor today. That is ledger. If you are looking at the one thing you should be looking at, which is self custody, ledger is the way to go. They've got this new stacks product coming out. It's actually should be releasing this month. So it's very possible we could see this device actually land in our hands in a very short period of time. But hey, listen, they've got some other products here as well. You've got the ledger nano X also the nano S plus. So you can get in fairly easily in terms of price, all up and down the lineup in terms of products, but the key here guys is get into self custody. It's a very simple process. I think a lot of people think it's much harder than it is. It is not. Make sure to use our link down below. It does help the channel. All right, so I'm going to lead off with this Bloomberg clip right here. And this is basically them the normies talking about what has happened. Let's play this clip. It's a crypto friendly bank and shares are just totally syncing. I mean, that feels like an understatement. We're done by 50% in two days, joining us on to discuss Bloomberg's Katie greifeld Katie, what's happening? It's brutal. So the big news yesterday for this crypto friendly bank. And it is a bank. It's a traditional bank that provides traditional banking stuff to crypto clients. So yesterday, it came out and said, it's not able to file its ten K, which was a big surprise.
The Breakdown
What the Silvergate Death Spiral Means for the Crypto Industry
"So today we're going to dig into not only why silvergate is crashing, but how it got to this point, and what its death spiral means for the industry. Let's start at the beginning. Silvergate bank is a medium sized crypto friendly bank based in California. For most of its 30 year history, silvergate was a tiny community bank focused on financing smaller real estate deals. It had only three branches and less than $1 billion in bank assets. In 2016, under the leadership of CEO Alan lane, the bank pivoted to providing banking services to crypto firms. Ben Reynolds silvergate president, who is hired to oversee this change in business strategy said, we need to deposit an Allen started seeing that companies like coinbase were getting kicked out of banks. So the idea was, if we can bank coinbase, we can find deposits. Allen went to the Federal Reserve and said we want to provide basic banking services to Bitcoin companies and they said okay. Over the next 6 years, silvergate downsized its existing business banking and real estate teams to lean heavily into crypto. In 2016, the bank had only 20 crypto clients, including paxos and bit fury, but this number grew to over 1000. This rapid expansion in dealing with the early crypto industry came with a large increase in compliance risk and overhead. According to anonymous sources speaking with Financial Times, silvergate had to hire twice as many compliance staff as comparable banks of its size. Waiting times for compliance checks on new customers ballooned out to 6 months. One of FT's sources said quote, when they got into it, crypto was this little new thing, and I think they didn't realize it would take off as fast as it did. So then they put all their chips in that direction, it ran away from them, it got very big very quickly. Now part of the reason that silvergate were able to achieve such a prominent position in the crypto ecosystem was the launch of their silvergate exchange network or sen in 2017. Said enabled crypto firms to immediately transfer U.S. dollars to other account holders at silvergate, 24 hours a day, every day of the year. Funds would be cleared near instantly and could be used immediately. While this feature might not have an obvious use case for the average retail trader, for large crypto funds this opened up the possibility of conducting arbitrage trades across exchanges at a much faster speed, while also allowing funds held on exchanges to be topped up after hours or on weekends.
The Crypto Overnighter
"silvergate bank" Discussed on The Crypto Overnighter
"Now, this is a developing story and there's a couple of components to it. The SEC told paxos that they plan to take enforcement action through a wells notice letter. Now the wells notice letter said that binance USD is an unregistered security. And after receiving the notice, paxos has 30 days to respond and to try to prove that they should not be charged. This response is called a wells submission. The SEC declined to comment on the possibility of an investigation. Binance said BUSD is made by paxos, and that they only use the paxos name. Now paxos is regulated by the New York department of financial services. A binance spokesperson said that stablecoins are important for protecting investors from market conditions and that limiting access to them could harm many people. They said that they will keep watching the situation and that their users do have access to many stablecoins. Paxos created the USD, which is a stablecoin that is backed by U.S. dollars. Binance helped in the creation of BUSD in September of 2019. And now, BUSD is the third largest stablecoin and has a value of over $16 billion. Also created the paxos dollar stablecoin in 2018. A Fox business journalist tweeted that the SEC and other regulators are working together to target the crypto industry and more notices are expected. This is another step by the SEC in their efforts to control crypto companies. On February 9th, the SEC settled with the crypto exchange kraken for $30 million for not registering their staking program as a security. After the settlement, the head of the SEC carry gensler told crypto companies to follow the law. One of the people in the SEC criticized the SEC for their action against kraken. On February 10th, an SEC commissioner named Hester pierce said the way the SEC was regulating was not fair or efficient. She publicly criticized them for ending a program that she said was helping people. And so it was announced this morning that paxos will stop making new BUSD tokens. Now, this is another part of the story coming up. Because the New York department of financial services told paxos to stop producing the USD. They said it was because of issues with paxos management of its relationship with binance. Paxos announced that it would, in fact, end its relationship with binance regarding BUSD. Texas stated that all BUSD tokens it issued are and always will be supported one to one with U.S.