Game over for Silvergate: The main cryptocurrencies are suffering!

After a colossal loss of 1 billion dollars, Silvergate Bank is in agony. Last Wednesday, the “crypto bank” announced the cessation of its activities and its liquidation to the chagrin of its crypto partners. Unfortunately, the shock wave caused by the collapse of Silvergate has impacted the main cryptocurrencies. Let’s see what it’s all about!

Silvergate, game over!

Should we fear an FTX bis scenario with Silvergate? In any case, all the formidable elements are almost there. To name only the massive loss of money, the departure of certain crypto collaborators, or the suspension of Silvergate Exchange Network (SEN). And to top it off, the White House is also closely monitoring the actions of the administration of this failing crypto bank.

On March 8, The Block reported part of Silvergate’s statement in a document filed with the SEC.

In light of recent industry and regulatory developments, Silvergate believes that an orderly reduction in banking operations and a voluntary liquidation of the bank is the best way forward. The bank’s liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets. »

At least they brought up the issue of refund in the document. May it not take years like the case of Mt. Gox.

Bitcoin and altcoins are victims

In a publication dated March 9, The Block also followed closely the impact of the collapse of Silvergate on the prices of the main cryptocurrencies.

BT/USD chart – Source: TradingView

Here are some details about the price reductions :

  • 2% for bitcoin (BTC);
  • 1.7% for ether (ETH);
  • 1.1% for Binance BNB;
  • 1% for Ripple’s XRP;
  • and 2.5% for Polygon’s MATIC.
Small update on cryptocurrency prices

Also, it should be noted that the volumes of crypto exchanges suffered relatively after the announcement of the liquidation of Silvergate. The latter would probably have learned with bitterness the 32% drop in SI.

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