The source of this meme is unknown as my colleague from France sent me on WeChat!
Silvergate Bank voluntarily wound down on March 8 ($12 billion in assets), Silicon Valley Bank (SVB) went into FDIC receivership on March 10 ($200 billion in assets), Signature Bank was shut down by state regulators on March 12 ($100 billion in assets). - Coindesk
The meme was sent to me by my colleague as I was aside from the news for suffering from the seasonal flu I couldn't read and went through the Hive for a couple of days. But this meme is saying about what? I couldn't find a logical answer and tried to understand why crypto lost Banks as Cryptos are here to replace BANKS! And my whole learning about cryptos is just thrown away by this meme and I found the answer with the Stablecoin. But is it a stable coin crypto? Not at all in my sense! And I prefer the UST is can be technically a stablecoin though it has already grounded not the USD-pegged coins maybe there are debates that are not my concern here and I can say HBD is also a Stable coin and I think until the crypto is completely decoupled from the traditional economic boundary, a true revolution is not possible! But as a non-technical person, it seems very difficult to happen in near future.
The irony of our media houses and the general sentiment is blaming the crypto for such incidents like my friend also thinks it is crypto that is liable for it but what is the actual reason?
Each of the failures is the outcome of lacking risk management of customer deposits.
The regulators are trying to show a strong anti-crypto position
The continuous and steady-state crash in the crypto market which is normal for the space
The Silvergate Exchange Network (SEN) and Signature’s Signet were real-time payment platforms that crypto customers considered core offerings. Both allowed commercial clients to make payments 24 hours a day, seven days a week, through their respective instant settlement services.“Bitcoin liquidity and crypto liquidity overall will be somewhat impaired because Signet and SEN were key for firms to get fiat in on the weekend,” said Carter, who added that he is hopeful that customer banks will step in to fill the void left by SEN and Signet. - CNBC
Is it going to create big trouble and what is the relation of cryptos here to destroy these BANKS where the SEN and Signet can instantly settle the deal and keep the dollar instead of the crypto assets to ensure the safety of the Banks from the extreme volatility of the crypto space. And if they fail to do that it is not the fault of the crypto at all!
But you need the liquidity option from the BANKs which will be tougher for the crypto space when no BANK will be offering such services! Is it going to happen or crypto is going to zero again as BTC has already done thousands of times by the speculation over it's life history? I think if North America wants to throw the cryptos, then there will be many more emerging places around the world to accept the cryptos to save their foot from the USD TRAP! I think which not gonna happen.
However, the crucial fact is that there are many crypto-related firms and companies that have their funds in these banks which will have a negative effect on crypto with the exaggerated form to make people more panic. But luckily the opposite movement in the crypto space has proved that such bullshit rumors can not harm the space anymore.
But I am seeing some more positive insights that many are ignoring as follows-
While the top BANKs collapsed with too much regulation under US supervision then how did they neglect Cryptos, especially BTC? The reality is only one coin that is truly decentralized is Bitcoin, even not Ethereum! And for the banks there are no crypto banks at all may be hundreds of whales who manipulate the space but the range of the manipulation will be shorter day by day.
The critical critics after the LUNA, and FTX collapse have lost their strength of such regulated body collapse!
Now or tomorrow one-day crypto must be beyond the traditional model and there will be no stablecoins that are pegged with the existing economic model which means the base of the crypto is connected to the faults that are the reason behind overcoming the BTC!
The trustlessness evolution is gonna happen soon as trust in these traditional systems is breaking day by day. And trustlessness is very important for the future development of blockchains.
Such failure is iterating the fact that the existing system can not handle the abnormal situation related to inflation or recession which will lead to revising the current model of the economy worldwide!
What are your thoughts about my points if you think some are missing here or some need to be revised or on which point I am wrong, please feel free to leave a comment which will help the community to know these together. Thank you so much for your time and attention in reading my post! Enjoy your every day in the best way you can. I will catch you at the next one!
Have a nice day!