The Ripple Effect: How the Silvergate Bank Shutdown is Impacting the Crypto Industry
If you are part of the crypto community and you are feeling alarmed right now, chances are you have heard the latest news surrounding Silvergate Bank.
Just five days after announcing the closure of the Silvergate Exchange Network (SEN), a pioneering payment system that enabled crypto businesses to exchange fiat currencies, Silvergate Bank has now made another major announcement.
Right.. things are certainly not going well in the crypto space at the moment. After ten years of being a major player in the industry, Silvergate Bank just announced that they’re calling it quits and liquidating their assets.
Now, if there is one business sector that has been hit the hardest by the latest issue, that would be the crypto exchanges. While you may assume that it’s because of their heavy reliance on Silvergate Bank, that is actually not the main cause. The primary reason is the significant amount of FUD that the latest issue has caused among their users.
Gemini, Coinbase, Paxos, Circle, Galaxy Digital, Bitstamp, and Kraken are a few of the well-known cryptocurrency exchanges that are brought up in the current headlines. What’s intriguing about the FUD circulating around these crypto exchanges is that it’s all unfounded. In fact, these crypto exchanges had already severed ties with the bank even before the announcement was made public. For instance, Kraken had taken measures to ensure the safety and security of clients and operating cash when winding down its relationship with Silvergate.
Sadly, the impact of the current situation extends beyond Silvergate’s former business clients. Despite having no past business ties to Silvergate, other exchanges like KuCoin are also affected by it.
The People’s Exchange maintains a variety of methods to deposit and withdraw crypto via their accounts. If you want to check it out, feel free to click on this link and take a closer look at KuCoin’s funding options. Being the world’s leading cryptocurrency exchange definitely has its downsides. Even if KuCoin has no association with any crypto-related controversies, FUD will still inevitably trail them.
If you are a user of any of the crypto exchanges mentioned in this blog and you were swayed by the FUD surrounding them, I’m confident that you now recognize the importance of developing a critical mindset and remaining vigilant.
These practices will enable you to navigate the complex crypto landscape with confidence, safeguarding your investments from the harmful effects of other people who are intentionally spreading FUD about a project for the purpose of making its value decrease or because they want to promote their own project as a better alternative.