The failure of Silicon Valley Bank (SVB) on March 10 has unleashed a wave of FUD throughout the crypto community, leading many to return to the roots of the crypto community, reviving the Bitcoin white paper published just weeks after it was published. the bankruptcy of Lehman Brothers in 2008.
It’s truly amazing how many people are scared that a couple banks went down. Someone tell these people WHY BITCOIN WAS CREATED.
—Toby Cunningham (@sircryptotips) March 11, 2023
It’s really unbelievable how many people are scared that a couple of banks have failed. Someone tell these people WHY BITCOIN WAS CREATED.
“There’s a whole generation of builders who just read about Lehman and the financial crisis and made fun of Bitcoin. Now their eyes are wide open. Welcome new friends,” declared on Twitter, Ryan Selkis, founder and CEO of Messari.
in shock
that’s all
the SPEED at which all of this is happening is unbelievable
— Meltem Demirors (@Melt_Dem) March 10, 2023
in shock
that’s all
the speed at which all this is happening is incredible
About six weeks after the dramatic bankruptcy of the American bank, Satoshi Nakamoto published the now famous white paper that paved the way for the emergence of the Bitcoin network.
Some blame the SVB bankruptcy on the rise in US interest rates. the federal reserve increase its reference rate last year to more than 4.5%, the highest since 2007. In January, the inflation rate in the United States was 6.4%.
Add “interest rate driven bank run” to the increasingly long list of “things I did not think I’d see in 2023”
—Sheila Warren (@sheila_warren) March 10, 2023
Add “interest rate-driven run on the bank” to the ever-longening list of “things I didn’t expect to see in 2023”
Many technology and cryptocurrency companies have been affected by the failure of Silicon Valley Bank. USD Coin (USDC) issuer Circle revealed that it was unable to withdraw $3.3 billion of its $40 billion reserves from the SVB, causing a sell-off and the stablecoin’s price falling below its USD peg. 1.
Less than 24 hours old and already experienced his first bank run. pic.twitter.com/PjqGh1UAXg
—Michael Bentley (@euler_mab) March 11, 2023
SVB, a bank insured by the Federal Deposit Insurance Corporation (FDIC), was about to close its operations when Circle initiated a wire transfer to withdraw your funds. The stablecoin ecosystem felt an immediate effect as the USD Coin decoupled from the US dollar. USDC’s collateral influence prompted major stablecoin ecosystems to decouple from the dollar. Dai (DAI), a stablecoin issued by MakerDAO, lost 7.4% in value due to the decoupling of USDC, Cointelegraph reported.
stablecoins
stablecoins
stablecoins
stablecoins
stablecoins
stablecoins
Unstablecoins—Cope (@Timccopeland) March 11, 2023
Other popular stablecoins such as Tether (USDT) and Binance USD (BUSD) continue to hold a 1:1 peg to the US dollar.
SVB was shut down by the California Department of Financial Protection and Innovation for undisclosed reasons. The California watchdog appointed the FDIC as receiver to protect insured deposits. However, the FDIC only insures deposits up to $250,000 per depositor, entity, and ownership category.
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