AFAIK, SVB received a bailout from the the government which rescue all the customers money. This save everyone that has money on it which makes crypto market rally in an insane speed due to this hype. Although it’s too early to celebrate since this will have an implications if other banks will do the same which government will shoulder all.
It’s not a direct bailout but surely the government rescue SVB funds.
https://www.nytimes.com/2023/03/13/business/economy/svb-bailout-questions.html
It’s not a direct bailout but surely the government rescue SVB funds.
https://www.nytimes.com/2023/03/13/business/economy/svb-bailout-questions.html
That's definitely surprising but in the long run, we need to think about how crypto projects are going to survive if they are going to be same-old fiat seekers. SVB case was something different, and it had crypto projects as well as many IT projects working outside the crypto space and in the real world. I think that had a large impact on the case and that could be one of the reasons for not ceasing all the operations of SVB. Imagine if this would have been a case like FTX then, SVB would have gotten the bailout like this.
mostly SVB deposits are of startups and businesses, so, some of them may be crypto startups,
Let's pause a moment and think of the irony that crypto start-ups are holding their funds in a bank in $.Quote
Silicon Valley Bank Contagion: Crypto Companies Affected Include BlockFi, Circle, Avalanche, Ripple
https://decrypt.co/123199/silicon-valley-bank-crypto-companies-contagionUnfortunately, it shows the not so good side of things, that we're still deeply anchored in the system, no matter what "revolutionizing" projects claim, it's still a fiat deal behind all of them.
And there is this thought process as well. Right on the point, considering how they act when it's a crypto project itself. The fiat and crypto relationship can break only if they consider crypto projects in terms of bitcoin value and not fiat. However, the world revolves around money or fiat as they know it for ages now. So it's a big question mark how to define the value of bitcoin or how to measure it? Unless and until we don't get that drift, we can never be successful in breaking that traditional chain.
