Jenny will discuss developing crypto-linked investment products in a bear market, the mood among her clients and her lon...Market observers say the ongoing breakdown of crypto-focused banks can have benefits for the crypto ecosystem in the long term, brushing off bearish sentiment that has emerged in crypto circles over the past few days.
In a separate move, crypto-friendly bank Signature was shut over the weekend, less than a week after the closure of another California-based bank, Silvergate. The three defunct banks were known for being crypto-friendly financial institutions. “In the near term, this could add to the increased regulatory scrutiny on crypto and the banking rails that serve crypto, and closer scrutiny of crypto’s contribution to systemic risk,” shared Ramani Ramachandran, co-founder and CEO of Router Protocol, in a message to CoinDesk.
Elsewhere, Jonathan Zeppettini, strategy Lead at Decred, said:"The situation with Silvergate, Silicon Valley Bank, and Signature is a combination of a few things; banks failing to properly hedge interest rate risk, a classic bank run stemming from that illiquidity as they are forced to realize losses if they do not hold those assets to maturity, and opportunism by regulators to force the unwind of banks that are seen as"crypto-friendly.
shauryamalwa $ROUTE
It is undeniable that the banking clampdown on crypto-focused companies brings both pros and cons to the market. It is important for companies to consider the potential implications of this development.
shauryamalwa Despite the current banking clampdown on crypto companies, market observers remain optimistic about the long-term benefits outweighing the drawbacks. HODL CryptoOptimism
shauryamalwa These are banking services for CEXs, which were always doomed because of the MtGox problem. DeFi and DEXs solve this problem, to it's not any kind of 'systemic risk' for crypto.
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