Bank run on Silicon Valley Bank, USDC depegged from U.S. dollar and FTX’s bankruptcy expenses hit $34 million in January.
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Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan.: Hodler’s Digest, March 5-11
Bank run on Silicon Valley Bank, USDC depegged from U.S. dollar and FTX’s bankruptcy expenses hit $34 million in January.
Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan.: Hodler’s Digest, March 5-11
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Silicon Valley Bank shut down by California regulator, holding over $5 billion for prominent crypto VCs
Silicon Valley Bank (SVB) was shut down by California’s financial watchdog on March 10 after announcing a significant sale of assets and stocks aimed at raising additional capital. The California watchdog appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver to protect insured deposits. However, the FDIC only insures up to $250,000 per depositor, per institution and per ownership category. The bank held over $5 billion in funds from major venture capital firms. Silicon Valley Bank is one of the top 20 largest banks in the United States, providing banking services to crypto-friendly venture companies, such as Sequoia Capital and Andreessen Horowitz.
USDC depegs as Circle confirms $3.3B stuck with Silicon Valley Bank
USD Coin (USDC) issuer Circle confirmed that $3.3 billion of its $40 billion USDC reserves remain at Silicon Valley Bank, triggering a sell-off that resulted in the stablecoin falling below $1. The stablecoin ecosystem felt an immediate impact as USDC depegged from the U.S. dollar, with major stablecoin depegging from the U.S. dollar as a consequence, including DAI, USDD and FRAX. The USDC price was slowly re-pegging on late Saturday after turbulent trading hours. Circle plans to cover missing liquidity in SVB with corporate funds.
Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan.: Hodler’s Digest, March 5-11
Bank run on Silicon Valley Bank, USDC depegged from U.S. dollar and FTX’s bankruptcy expenses hit $34 million in January.
Silicon Valley Bank down, USDC depegged, FTX billed $34M in Jan.: Hodler’s Digest, March 5-11
Bank run on Silicon Valley Bank, USDC depegged from U.S. dollar and FTX’s bankruptcy expenses hit $34 million in January.
Aave freezes stablecoin trading on Avalanche V3 as activity surges on CEXs
The trading freeze follows an analysis from DeFi's risk manager firm Gauntlet Network considering different scenarios for the USD Coin price.
Breaking: USDC slowly repegs on unconfirmed reports of SVB resolution
According to insiders, 50% of uninsured deposits will be paid out by next week.
ATOM bulls watch closely as Cosmos interchain security prepares for March 15 launch
The Cosmos community has approved a vote to add “replicated security (RS)” to its chain, with 99.99% of votes in favor of the motion. The much-awaited upgrade is set to go live on March 15, 2023, with the v9-Lamba upgrade.
RS is the first version of Cosmos’s Interchain Security (ICS) feature, allowing blockchains in the Cosmos ecosystem to share validation resources for improved security.
Only protocols approved by Cosmos governance will be added as consumer chains in the upcoming update. Eight consumer chains are potential candidates for selection, including Neutron, PolymerDAO, Duality, Stride, Simply Staking, FairBlock and Comdex.
Cosmos’s interchain security could start a virtuous real yield cycle
The Replicated Security feature will distribute up to 25% of the consumer chain fees to Cosmos Hub stakers. The protocols can also allocate a portion of token inflation and revenue streams to Cosmos (ATOM) stakers.
The ICS implementation allows consumer chains to focus entirely on the growth of the network’s economy, as Cosmos Hub’s validators provide reliable security against 51% attacks and double-spending. This will bring additional yield to ATOM stakers and allow consumer chains to optimize for growth.
Failed tech bank SVB held over $5B for prominent crypto VCs: Report
It is unclear how much assets custodied on behalf of crypto VCs are stuck in Silicon Valley Bank.
How to host a decentralized website
Explore decentralized web hosting and how it distributes data securely across a network of nodes.
Crypto whales suffer huge losses due to USDC depeg, SVB collapse
The depegging of the USDC stablecoin has affected other stablecoins, which in turn wreaked havoc on crypto projects and stakeholders in a massive chain reaction.
Banks down? That is why Bitcoin was created, crypto community says
Silicon Valley Bank (SVB) collapse on March 10 has sparked fear, doubt, and uncertainty (FUD) across the crypto community, leading many to come back to crypto roots, reviving the Bitcoin white paper published just weeks after the Lehman Brothers meltdown in 2008.
"There’s an entire generation of builders who only read about Lehman and the financial crisis and scoffed at Bitcoin. Now, their eyes are wide open. Welcome new friends," stated on Twitter Ryan Selkis, founder and CEO of Messari.
Approximately six weeks after the dramatic collapse of the American bank, Satoshi Nakamoto released the now famous white paper that paved the way for the emergence of the Bitcoin network.
Some people blame the SVB failure on the rising interest rates in the United States. The Federal Reserve increased its benchmark rate over the past year to more than 4.5% - the highest rate since 2007. In January, the inflation rate in the US was 6.4%.
Many crypto and tech companies are affected by the collapse of Silicon Valley Bank. USD Coin (USDC) issuer Circle revealed it could not withdraw $3.3 billion of its $40 billion reserves from SVB, leading to a sell-off and the stablecoin's price dropping below its $1 peg.
Banks down? That is why Bitcoin was created, crypto community says
Silicon Valley Bank (SVB) collapse on March 10 has sparked fear, doubt, and uncertainty (FUD) across the crypto community.
Aavegotchi bonding curve closes on exact day of DAI depeg
The price of GHST was supported by that of DAI stablecoin for over two years.
Ethereum layer-2 solutions may focus less on token incentives in the future
Token incentive models may become obsolete as layer-2 networks focus on ease of functionality and low fees, but how will this impact decentralization?
Ethereum layer-2 solutions may focus less on token incentives in the future
Token incentive models may become obsolete as layer-2 networks focus on ease of functionality and low fees, but how will this impact decentralization?
Maker DAO files emergency proposal addressing 3.1B USDC exposure
"Proposal(s) implementing the above changes are expected to be posted in the next ~12 hours or less," says Maker.
Bitcoin price spikes to '$26K' in USDC terms — How high can the BTC short squeeze go?
Bitcoin (BTC) refused to let $20,000 support die for good on March 11 as the weekend opened to a battle for lost ground.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin shakes off USDC depeg
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $20,200 at the time of writing.
A brief dip below the $20,000 mark overnight was short lived, and the mood appeared more stable on the day as the initial wave of panic over United States bank stability subsided.
The collapse of SVB Financial, which followed Silvergate in dealing a fresh blow to some crypto firms, nonetheless continued to play out.
At the heart of the debacle this time was Circle, the Blockchain firm which overnight revealed that it had lost part of the reserve funds for its stablecoin, USD Coin (USDC) with SVB.
Bitcoin price spikes to '$26K' in USDC terms — How high can the BTC short squeeze go?
Bitcoin recovers from the depegging of USDC, the second-largest stablecoin, from the U.S. dollar.