The sad news of the week was that the “crypto bank” called Silvergate Capital is unlikely to survive the next year. With this, its shares showed another drop and almost caught up with the deep flight of FTT tokens on the FTX exchange.
From the point of view of the entire cryptocurrency sector and its liquidity, the few banks that are also called “crypto banks” and maintain accounts for crypto exchanges and related businesses are important. Such is Silvergate Capital, which, however, is being left one after another by business partners, emptying their accounts, and the SEC is also harassing it. According to the news of the week, the bank itself no longer believes that it will survive the next year.
The stock, which was already going down during the “crypto winter”, was pushed to new depths by the FTX bankruptcy in November. The bank also maintained particularly close ties with Sam Bankman-Fried’s empire. And now, after the bunch of bad news on March 2, the share price dropped again within minutes, almost catching up with the FTT tokens in the fall measured in one year (95 and 97 percent, respectively).
Who knows how many more bankruptcies will be announced following last year’s series of scandals.
https://www.youtube.com/watch?v=videoseries