High Profile Collapse - Silveragte now Shuts the door!

[Flexystar]

Previously when I published news about Silvergates stating how it is on the verge of collapse and major crypto institutional investors were pulling their money out of the bank thus worsening the situation even further.

Now the time has come when Silvergate has finally decided to shut down its business.

Is it going too quickly? The answer is no actually. The whole process of shutting down the Silkveragte would need around 2 years of projected time. The reason behind this is very simple, it was the biggest lender around the market and thus they have loans that are under recovery. Due to its collapse, the lender has to regain control of all their paid-out money along with the interests.

This is the process that will take another 2 years of the timeline to shut it completely.

The FTX really made good businesses go down the sink. It's bad to see players like that, such owners and CEOs must be banned from doing such practices.

Shares of crypto-focused companies fell on Thursday after Silvergate Capital Corp disclosed plans to wind down operations and voluntarily liquidate, as the aftermath of FTX's implosion last year reverberates through the industry.

Analysts said a complete closure of the crypto lender could take one or two years depending on how quickly outstanding loans are repaid and assets are disposed of.

Silvergate's latest move adds to a list of high-profile collapses among crypto market players since last year

The company's shares plunged 37% to $3.11, a day after hitting a record low and have lost 64% since March 1 when the company flagged a going concern risk.

"We believe this decision was made, at least in part, to help mitigate Silvergate Bank's legal liability related to FTX's bankruptcy," Wedbush analysts wrote in a note.

Silvergate did not immediately respond to a request for comment on the analysts' view.
Meanwhile, shorting in the shares of Silvergate has proved profitable for bearish investors as its shares have lost 95% of their value in the past 12 months and 72% so far this year.

Crypto stocks slide after Silvergate decides to shut down

[1714653047]

1714653047

[1714653047]

1714653047

[1714653047]

1714653047

[1714653047]

1714653047

[1714653047]

1714653047

[Husires]

I do not expect that the worst will come because it is a slow death, and therefore the loss will be great at the moment of the announcement, and the rate of exposed companies will decline over time.
I hope that what happens is not a domino stone, so that all fall and it will have a domino effect if a large stone falls, meaning the bankruptcy of a platform or service that represents one of the largest 20 platforms or cryptocurrency service providers. If this happens in the coming months, then things will suddenly be bad.

The lesson learned is that those companies generating profits from selling their tokens is wrong, and depositing in those companies to get profits is another mistake.

[Hispo]

I do not expect that the worst will come because it is a slow death, and therefore the loss will be great at the moment of the announcement, and the rate of exposed companies will decline over time.
I hope that what happens is not a domino stone, so that all fall and it will have a domino effect if a large stone falls, meaning the bankruptcy of a platform or service that represents one of the largest 20 platforms or cryptocurrency service providers. If this happens in the coming months, then things will suddenly be bad.

The lesson learned is that those companies generating profits from selling their tokens is wrong, and depositing in those companies to get profits is another mistake.

We if are honest, even though all this disaster could be taken as a valuable lesson, it is unlikely cryptocurrency companies in the future will look to the past and recall all this so they can overcome their greed for the sake of their clients.

That is why we need to be aware of the centralized nature of exchanges and banks, those CEOs talk about decentralization, but as soon as they start to hold billions of dollars (of their clients) it is too tempting for them to move that money around, looking for passive income and further wealth.

I personally did not expect Silvergate to have this much of a negative effect on the price of Bitcoin, but here we are...

[panganib999]

I do not expect that the worst will come because it is a slow death, and therefore the loss will be great at the moment of the announcement, and the rate of exposed companies will decline over time.
I hope that what happens is not a domino stone, so that all fall and it will have a domino effect if a large stone falls, meaning the bankruptcy of a platform or service that represents one of the largest 20 platforms or cryptocurrency service providers. If this happens in the coming months, then things will suddenly be bad.

The lesson learned is that those companies generating profits from selling their tokens is wrong, and depositing in those companies to get profits is another mistake.

Looking at how the market fares these days, I don't think a domino effect is imminent considering that this news is already a few days old too, and bitcoin as well as other blue chip cryptocurrencies out there are performing a little better than compared to last year, granted valuation declined these past few days by more or less 7%. In any case, the death of Silvergate is something that the cryptocurrency industry will take years to recuperate, and the fact that the other crypto lender also fell down last year just goes to show how impernanent the industry is in its current form. Newer and better renditions are badly needed to combat issues that we are currently facing.

[Husires]

I personally did not expect Silvergate to have this much of a negative effect on the price of Bitcoin, but here we are...

So far, we have not seen the negative impact, as it is an echo of news and some declines here and there, but it did not happen, as happened with Luna, from a collapse in prices, so I hope that the worst has already happened, otherwise we may re-test the resistance levels at less than 17K again.

What worries me most is the close connection between all these services. I do not know why, but since they are central entities, at least they should have a plan to diversify their investments or ensure liquidity, not how to collect more money and expand quickly.

[Fortify]

Previously when I published news about Silvergates stating how it is on the verge of collapse and major crypto institutional investors were pulling their money out of the bank thus worsening the situation even further.

Now the time has come when Silvergate has finally decided to shut down its business.

Is it going too quickly? The answer is no actually. The whole process of shutting down the Silkveragte would need around 2 years of projected time. The reason behind this is very simple, it was the biggest lender around the market and thus they have loans that are under recovery. Due to its collapse, the lender has to regain control of all their paid-out money along with the interests.

This is the process that will take another 2 years of the timeline to shut it completely.

The FTX really made good businesses go down the sink. It's bad to see players like that, such owners and CEOs must be banned from doing such practices.

Shares of crypto-focused companies fell on Thursday after Silvergate Capital Corp disclosed plans to wind down operations and voluntarily liquidate, as the aftermath of FTX's implosion last year reverberates through the industry.

Analysts said a complete closure of the crypto lender could take one or two years depending on how quickly outstanding loans are repaid and assets are disposed of.

Silvergate's latest move adds to a list of high-profile collapses among crypto market players since last year

The company's shares plunged 37% to $3.11, a day after hitting a record low and have lost 64% since March 1 when the company flagged a going concern risk.

"We believe this decision was made, at least in part, to help mitigate Silvergate Bank's legal liability related to FTX's bankruptcy," Wedbush analysts wrote in a note.

Silvergate did not immediately respond to a request for comment on the analysts' view.
Meanwhile, shorting in the shares of Silvergate has proved profitable for bearish investors as its shares have lost 95% of their value in the past 12 months and 72% so far this year.

It's actually going to be interesting to see where the collapse of this bank will lead tomorrow. As quite often in history we've seen that the ripple effects of one company can effect many unrelated and unexpected companies in a type of contagion. Let's hope it's nothing like the 2008 financial crisis which gradually got worse as new financial scandals were discovered when the first bank started to fail. Hopefully the US government and other governments are able to draw a line underneath this bank, although unfortunately it'll probably be taxpayers who end up bailing out endless greed and reckless behavior by a few individuals. From the small parts I've read, they've actually got enough assets to cover the company, they're just not liquid enough (US treasuries) to cash out big sums as quickly as customers wanted to redeem them.