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That's how the cookie crumbles 🍪 ⚒️
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.
Hello y'all. This is The Token Dispatch. What did we tell ya, eh? Banks calm down, calm down … oh-oh-oh-oh-oh-oh-oh-oh-oh-oh-oh 🎶
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.
Tech startups are scrambling. How did we reach here?
TTD WTF 😮
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.
Crypto is running circles ⭕
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. Circle has $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.
TTD Blockquote 🔊
Four Republican Senators in a letter to the US regulators.
The problems of the few should not drive the harm of many … Regulators should not be punishing an entire industry.
Senators Bill Hagerty, Mike Crapo, Thom Tillis and Steve Daines have asked for a response by March 24, 2023. The four wise men.
Lot of questions, none of them easy. Here's some food for thought.
So long. OKAY? ✋
The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.