• SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection.
• The filing was submitted in the Southern District of New York and aims to preserve company value.
• Customers will receive funds via FDIC insurance and an emergency plan from the Biden administration and U.S. Treasury.

Filing for Bankruptcy Protection

SVB Financial Group, the parent company of Silicon Valley Bank, has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Southern District of New York on March 17th, with a plan to explore strategic alternatives as determined by a board-appointed restructuring team made up of five members. Joele Frank is involved in this case as well.

Continuing Services

Though Silicon Valley Bank has failed, SVB’s other services — SVB Capital and SVB Securities — will continue to provide services to their customers with no disruption in service quality or customer experience expected during this process since they are no longer associated with the failed bank.

Cause of Bankruptcy

The collapse occurred shortly after Silicon Valley Bank announced plans to over $2 billion of funds which caused a weekend bank run leading to its failure and shut down by US regulators who took over control of customer assets on March 10th.. Circle and BlockFi were among cryptocurrency companies affected by this failure.

Receiving Funds

Customers will regain access to their funds elsewhere as Federal Deposit Insurance Corporation (FDIC) provides them with insured portion while an emergency plan from the Biden administration and U.S. Treasury provides them rest amount from their funds .

Preserving Company Value

SVB Financial Group believes that it has $3 billion worth debt unsecured notes ,$3 billion worth outstanding preferred equity alongwith $ 2 billion worth liquidity which would be preserved through this reorganization process .

Summary:
• Unemployment rate rose to 3.6% in the U.S., with Bitcoin breaking above the $20k level immediately afterwards.
• Markets are now favouring a 25 bps interest rate increase at the upcoming FOMC meeting, with a terminal rate of 5.50%.
• The U.S. Dollar has retreated to 104.8, leading to an uplift on major currencies like the Euro and Pound Sterling.

Unemployment Data

The U.S unemployment rate rose to 3.6%, with 311k jobs created compared to an estimate of 205k jobs being created for the month of March 2023. This was enough for Bitcoin to break above the $20k level immediately after the news was released, as investors saw it as a bullish sign for the digital asset market overall.

FOMC Meeting

Markets are now favouring a 25 basis point increase during the upcoming Federal Open Market Committee (FOMC) meeting on March 22nd, with a terminal rate of 5.50%. This is seen as more likely than a 50 bps hike which had been previously predicted by analysts and traders alike prior to this economic data release..

Uplift on Currencies

The U.S Dollar has retreated from its highs following this news and is now sitting at 104.8, leading to an uplift on major currencies like the Euro and Pound Sterling against it respectively .

Conclusion

It remains to be seen what effect this news will have on Bitcoin in terms of price action over coming weeks; however it appears that markets are viewing this data positively and that could be a sign of further increases in prices for digital assets such as BTC moving forward into 2021 and beyond..

Disclaimer

CryptoSlate does not endorse any project or provide investment advice, nor should any information read on CryptoSlate be taken as such – please do your own due diligence before taking any action related to content within this article!

• Coinbase has dropped Silvergate as its payment partner and urged Prime users to update their payment instructions to Signature Bank.
• This move led to a 44% decrease in Value of Silvergate shares (SI).
• U.S Department of Justice is currently investigating Silvergate for its role in the FTX collapse.

Coinbase Severs Payment Partnership With Silvergate

Silvergate Shares Suffer 46% Loss

Leading crypto exchange Coinbase informed its Primer users on March 2 that it has decided to drop Silvergate as its banking partner, leading to the company’s share plummeting by over 44%. The abrupt change caused a significant reduction in the value of Silvergate shares (SI).

Investigation Into FTX Collapse

The reason behind Coinbase’s decision may be linked to an ongoing investigation by U.S authorities into the FTX collapse. Several U.S senators had accused Silvergate of conducting business deals with FTX, despite having knowledge of the exchange’s mismanagement of customers‘ funds. At the end of the fourth quarter of 2022, Silvergate reportedly lost over $1 billion due to a sustained decrease in digital asset customers, further compounding its troubles.

Update Payment Instructions To Signature Bank

Coinbase has urged Prime users to update their payment instructions to reflect details from Signature Bank – its new banking partner for all USD-related payments – saying that this update will not affect users‘ crypto holdings or trading experience on Coinbase Prime.

Failure To Submit 10-K Report To SEC

Adding insult to injury, Silvergate failed to submit its annual 10-K report to the U.S Securities and Exchange Commission (SEC) on March 1, causing a further 32% slide in share value down to $9.14 per share.

Conclusion

Coinbase’s decision has had serious consequences for Silvergate, with investigations into their alleged involvement in the FTX fallout continuing and losses mounting due to decreased digital asset customers and failure to submit 10-K report on time

• Bitcoin is currently experiencing its longest streak of profit-taking since the 2021 bull run.
• Over the past 14 days, only around $45 million of profits have been realized, considerably less than in previous streaks.
• The SEC’s notice to Paxos to stop minting BUSD could have longstanding implications on the crypto market.

Bitcoin Experiences Longest Streak of Profit Taking Since 2021 Bull Run

Bitcoin is currently experiencing its longest streak of profit-taking since the 2021 bull run. This was defined by net realized profit/loss, which indicates that investors are taking the opportunity for profits. Over a 14 DMA, this is the longest streak of profit-taking since November 2021.

Short Term Holders Take Profits Last Week

CryptoSlate analyzed that last week there was predominantly profit-taking from short term holders. In comparison to previous streaks of profit taking, this period has seen far less money moved; over the past 14 days, only around $45 million of profits have been realized. Additionally, Bitcoin continues to face resistance at $25,000 – which could be due to investors realizing their profits here.

Implications Of SEC Notice To Paxos To Stop Minting BUSD

The SEC recently gave notice to Paxos ordering them to stop minting BUSD stablecoins as they had not registered with them as an exchange or clearing agency – something required by law in order for stablecoins to be issued and traded in US markets. This enforcement action against Paxos could have long standing implications on the crypto market and stablecoin industry as a whole. CryptoSlate’s new report explores these implications and potential consequences for all involved parties in more depth.

Conclusion

Investors are continuing to take advantage of recent opportunities and realize profits from Bitcoin; with this being the longest streak since November 2021 according to net realized profit/loss figures. The SEC’s recent notice sent out to Paxos also has potential long standing implications on both the crypto market and wider stablecoin industry – with CryptoSlate providing further insights into this matter in their newest report regarding enforcement action against Paxos.

• Zilliqa co-founder Max Kantelia announced the launch of ROLL1NG THUND3ERZ, a Web3 gaming and hardware company.
• The company was inspired by the lyrics from the AC/DC song Hells Bells, which captures the project’s „forces of nature“ approach to gaming.
• The Gaming Hub ecosystem is accessible on a desktop without needing Lightn1ng console.

ROLL1NG THUND3ERZ Launches

Zilliqa co-founder Max Kantelia announced the launch of ROLL1NG THUND3ERZ, calling it a „monumental achievement.“ This Web3 gaming and hardware company was inspired by the lyrics from the AC/DC song Hells Bells, which captured its „forces of nature“ approach to gaming.

Lightn1ng Console Unveiled

In September 2022, Zilliqa announced plans to launch a Web3 gaming console called Lightn1ng. It was accompanied by pics of the prototype with ports such as HDMI, Ethernet and USB-C, and USB 3.0. However, today’s announcement clarified that you don’t need this console to access its Gaming Hub ecosystem on your desktop.

ROLL1NG THUND3ERZ Philosophy

At ROLL1NG THUND3ERZ, they believe in building fun games that leverage blockchain capabilities instead of adapting blockchain tech for gaming purposes. They also develop tooling to enable developers to build games and dApps on top of Zilliqa blockchain.

Valentin Cobelea Interview

Valentin Cobelea (Head of Gaming at Zilliqa) spoke with Max Kantelia in an AMA on the future of Web3 gaming when they made this announcement. During the AMA he explained their philosophy behind ROLL1NG THUND3RZ and how it will help more developers build applications on top of Zilliqa blockchain in order to create sustainable businesses in long run.

Conclusion

ROLL1NG THUND3ERZ is more than just a game studio; it is an opportunity for developers to create sustainable businesses through creating applications utilizing blockchain technology and accessibility through their Gaming Hub ecosystem without needing Lightn1ng console or other specialized hardware

• London, Dubai and New York have been ranked as the top 3 crypto hubs, with over 800 crypto-based companies active in the UK’s most populous city.
• Recap’s annual list of top crypto hub cities for 2023 looks at key metrics like tax status, quality of life index and the overall number of crypto companies and specialists in a given metropolitan area.
• Singapore has 25% crypto ownership, more than 800 crypto companies, and over 1,000 industry workers.

London: World’s Second Highest Number of Crypto Companies

London was praised for having over 800 crypto companies and an estimated 2,173 people working in crypto-related jobs; the highest number of people working in the industry compared to anywhere else. It topped Recap’s annual list of top crypto hub cities for 2023 looking at key metrics such as tax status, quality of life index, and the overall number of cryptocurrency companies and specialists in a given metropolitan area.

Dubai: Regulatory Open Door Policy for Crypto

Coming in second place is Dubai with industry behemoth Binance (and CZ himself) based there. The Emirate has adopted a regulatory open door policy when it comes to regulating cryptocurrencies. There have been efforts to explore how blockchain innovations, exchanges, and OTCs help build up a flourishing DeFi industry within its borders which is home to many entrepreneurs.

New York: Significant Investment In R&D

Third on the list is New York which boasts significant investment in R&D employing over 1,400 people into cryptocurrency related positions with 843 firms specializing in this field. Several large conferences are also held here annually making it one of the main players towards widespread adoption of digital assets worldwide.

Singapore: Tax Free Crypto Investing

Fourth on Recap’s list is Singapore another hub for cryptocurrency taxation but without any capital gains tax on investors who own cryptocurrencies which has attracted many investors into exploring various opportunities within this space leading to 25% ownership rate from citizens along with 800+ firms providing services centered around digital assets plus 1000+ individuals employed by these firms making them one of most important players towards mass adoption worldwide..

Los Angeles & Zug: Growing Crypto Communities

Los Angeles follows suit as 5th on this list lauded for developing a thriving cryptocurrency community while Zug at 6th spot known as “crypto valley” houses private equity investment firms like Dialectic along with Bitcoin/Ethereum Foundations alongside numerous other startups plus NFT galleries offering favorable conditions to those interested in investing into digital asset marketplaces or simply just participating these new technologies

• The White House has released a report outlining its stance on cryptocurrency regulation, calling it a “grave mistake” to deepen ties between crypto and the broader financial system.
• The authors of the report suggest Congress should act to expand regulators’ powers to prevent misuses of customers’ assets, separate crypto banking from traditional banking, and mitigate risky behaviors.
• The report also urged Congress to enact legislation to combat conflicts of interest and to protect customers from potential harm.

The White House has released a report outlining their stance on cryptocurrency regulation, calling it a „grave mistake“ to deepen ties between crypto and the broader financial system. The report was authored by members of President Joe Biden’s economic team, including Brian Deese, the director of the National Economic Council, Arati Prabhakar, the director of the White House Office of Science and Technology Policy, Cecilia Rouse, the chair of the Council of Economic Advisors, and National Security Advisor Jake Sullivan.

The report suggests that Congress should act to expand regulators‘ powers to prevent misuses of customers‘ assets, separate crypto banking from traditional banking, and mitigate risky behaviors. The authors argue that the financial industry is not moving quickly enough to provide regulatory clarification to the public, and thus legislation should be enacted to separate crypto banking from traditional banking, much like the Glass-Steagall Act of 1933, which separated commercial and investment banking.

The report also urges Congress to act to mitigate the types of risky behaviors, without naming names, i.e., Silvergate Capital, the parent company to a crypto bank that held billions in deposits from some of the industry’s most notable players. The authors suggest that Congress should enact legislation to combat conflicts of interest and to protect customers from potential harm.

The authors of the report conclude by stressing the importance of regulating the crypto industry in a way that allows for innovation and growth, while still protecting consumers. They emphasize that any regulation should be clear, predictable, and flexible, and should account for the constantly evolving nature of the industry. The authors also emphasize that any regulation should be done in a way that is consistent with the core values of the US, such as individual liberty, free markets, and technological innovation.

•  FTX CEO John Ray III has indicated that the exchange could be reopened
• FinCEN has accused Binance of acting as a counterparty to the newly-prosecuted exchange Bitzlato
• The attacker who exploited Raydium has moved $2.7 million of funds through Tornado Cash

FTX CEO John Ray III has indicated that the exchange could potentially be reopened in the wake of its closure. According to John, a task force has been created to explore the possibility of relaunching FTX.com, the company’s primary international exchange. This announcement has been met with both excitement and trepidation from the crypto community, as FTX officials have been accused of criminal activity.

In other news, FinCEN has accused Binance of acting as a counterparty to the newly-prosecuted exchange Bitzlato. Specifically, FinCEN highlighted that Binance had allowed funds to be transferred from Bitzlato to its own wallet, which then allowed the user to withdraw the funds in fiat. Binance has since denied these claims and has stated that it has taken steps to ensure that its platform remains compliant with regulatory standards.

Meanwhile, the attacker who exploited Raydium has moved $2.7 million of funds through Tornado Cash, a privacy-preserving Ethereum mixer. The attacker managed to gain access to the Raydium smart contract and extract $2.7 million in funds using a re-entrancy attack. The funds were then transferred to Tornado Cash and later withdrawn without any trace of the transaction. This incident highlights the importance of security measures for smart contract and blockchain-based projects.

The Ethereum Name Service (ENS) is also considering selling a portion of its ETH holdings to fund future development initiatives. ENS is an Ethereum-based service that allows users to register and manage domain names on the blockchain. The organization recently indicated that it would be selling a portion of its ETH holdings in order to fund future development initiatives.

Yuga Labs is taking a stand against certain NFT marketplaces that do not support royalties. Yuga Labs is a blockchain-based platform that allows creators to monetize their content through the issuance of tokenized digital collectibles. The platform recently announced that it would be blacklisting certain NFT marketplaces that do not support royalties for creators. This move is aimed at ensuring that creators are properly compensated for their work.

Finally, a new study has revealed that the bottom of the Bitcoin market is beginning to show signs of a recovery. The study, which was conducted by crypto analytics firm IntoTheBlock, found that the number of addresses holding BTC has increased by over 20% since the start of 2021. This indicates that more people are beginning to take an interest in Bitcoin, resulting in an increase in demand for the digital asset.

• MakerDAO community voted in favor of keeping Gemini USD stablecoin as part of the protocol’s DAI stablecoin reserves.
• The poll that ended on January 19 showed 50.85% of the votes supporting keeping the GUSD debt ceiling at $500 million in Maker’s Peg Stability Module (PSM), and 49.15% supported removing it completely.
• This means MakerDAO will continue to hold 85% of all GUSD in circulation in its PSM.

The MakerDAO community recently voted in a governance poll to decide on the future of the Gemini USD stablecoin as part of the protocol’s DAI stablecoin reserves. This was in response to the liquidity crisis plaguing Gemini’s Earn program, which could have presented a major risk to MakerDAO if the decision had gone the other way.

The poll, which ended on January 19, showed 50.85% of the votes supporting keeping the GUSD debt ceiling at $500 million in Maker’s Peg Stability Module (PSM). The remaining 49.15% of the votes supported removing it completely. This means MakerDAO will continue to hold 85% of all GUSD in circulation in its PSM.

The PSM is a mechanism that allows users to mint DAI in exchange for collateral accepted by Maker. It also keeps DAI’s peg with the U.S. Dollar. The outcome of the poll therefore avoided a tragedy for GUSD and ensured MakerDAO’s exposure to Gemini would remain limited.

The concerns about GUSD stem from the $900 million Gemini Earn assets remaining locked up with Genesis, which has suspended withdrawals. Gemini is also under pressure after it halted withdrawals from its yield-generating Earn program. Further, the U.S. Securities and Exchange Commission charged the exchange for alleged unregistered securities sales.

Nevertheless, the MakerDAO community chose to maintain the GUSD debt ceiling within the PSM, which is a testament to the trust and confidence it has in the stablecoin. This decision is likely to prove beneficial not just to MakerDAO, but also to Gemini, as it will ensure the continued acceptance of GUSD within the Maker protocol.