The collapse of one of the largest banks in the crypto industry has led to another crisis of confidence in the industry.
One of the largest banks in the cryptocurrency industry, Silvergate Capital, plans to wind down operations and voluntarily liquidate. The move sent stocks of crypto-related companies plummeting as the bank’s collapse triggered a crisis of confidence in the industry, Reuters writes.
According to Markus Sotiriou, market analyst at GlobalBlock, investors are now worried about the collapse of the bank. This could have major implications for US cryptocurrency regulation and the ability of banks to work with digital asset platforms and cryptocurrency brokerages.
At the same time, Konstantin Shulga, head and co-founder of Finery Markets, believes that the collapse of the bank could potentially mean a certain trend towards the release of cryptocurrency outside the United States, at least until a more comprehensive regulatory framework is created in the United States in the field. cryptocurrencies.
KBW Managing Director Michael Perito recalled that Silvergate still has a $205 million Microstrategy term loan outstanding, although the loan was heavily backed by BTC and was running at the end of the year, and there is currently no idea how and at what cost it could be liquidated.
Several companies have announced they are no longer working with Silvergate. The first connection with the bank was cut off by LedgerX. Later, the Coinbase cryptocurrency exchange took a similar step. The bank itself said that it postponed the filing of the report against the backdrop of an increase in transactions to repay debt obligations to creditors.